Section 3 of SICA : Section 3: Repeal Of Act 1 Of 1986 And Dissolution Of Appellate Authority And Board

Explanation using Example

Imagine a company, XYZ Textiles Ltd., which has been performing poorly and is unable to repay its debts. Under the The Sick Industrial Companies (Special Provisions) Act, 1985, XYZ Textiles Ltd. could seek relief and restructuring assistance. However, with the repeal of this Act in 2003, such a company can no longer approach the Board for Industrial and Financial Reconstruction (BIFR) or the Appellate Authority for relief. Instead, they might now have to seek resolution through the mechanisms provided under the Insolvency and Bankruptcy Code or other relevant laws in force.