The Sick Industrial Companies (Special Provisions) Repeal Act, 2003

The Sick Industrial Companies (Special Provisions) Repeal Act, 2003 was enacted to repeal the Sick Industrial Companies (Special Provisions) Act, 1985. The purpose of the Act was to provide for the timely and efficient disposal of the assets of sick industrial companies and to provide speedy relief to their creditors. The Act also aimed to promote the revival of potentially viable sick units and, if necessary, the liquidation of unviable units. It brought in an institutional mechanism, such as the Board for Industrial and Financial Reconstruction, to deal with cases of sickness and provided for the appointment of a special officer to manage the affairs of a sick company. With the repeal of the Act in 2003, the mechanism for the revival of sick units has changed significantly.