#THE SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) REPEAL ACT, 2003
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##ARRANGEMENT OF SECTIONS 
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###SECTIONS 

1.  Short title and commencement. 
2.  Definitions. 
3.  Repeal of Act 1 of 1986 and dissolution of Appellate Authority and Board. 
4.  Consequential provisions. 
5.  Saving. 
6.  Power to make rules. 


 
#THE SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) REPEAL ACT, 2003 

##ACT NO. 1 OF 2004 

[1st January, 2004.] 

An Act to repeal the Sick Industrial Companies (Special Provisions) Act, 1985.

BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:— 

1. **Short title and commencement.**—(1) This Act may be called the  Sick  Industrial  Companies 
(Special Provisions) Repeal Act, 2003. 

(2) It shall come into force on such date as the Central Government may, by notification in the 
Official Gazette, appoint. 

2. **Definitions.**—In this Act, unless the context otherwise requires,— 

(a)  “Appellate  Authority''  means  the  Appellate  Authority  for  Industrial  and  Financial 
Reconstruction constituted under section 5 of the Sick Industrial Companies (Special Provisions) Act, 
1985 (1 of 1986); 

(b) “Board'' means the Board for Industrial and Financial Reconstruction  established  under 
section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); 

(c) words and expressions used herein and not defined but defined in the  Sick  Industrial 
Companies (Special Provisions) Act, 1985 (1 of1986), shall have the meanings respectively assigned 
to them in that Act. 

3. **Repeal of Act 1 of 1986 and dissolution of Appellate Authority and Board.**—The  Sick 
Industrial Companies (Special Provisions) Act, 1985(hereinafter referred to as the repealed enactment) is 
hereby repealed and the Appellate Authority and the Board stand dissolved. 

4. **Consequential provisions.**—On the dissolution of the Appellate Authority and the Board,— 

(a) (i) the persons appointed as Chairman and Member of the Appellate Authority or the Board; 
and 

(ii) every other person appointed by the Central Government, Appellate Authority or the Board, 

and holding office as such immediately before the commencement of this Act, shall vacate his office and 
no  such  Chairman,  Member  or  other  person  shall  be  entitled  to  claim  any  compensation  for  premature 
termination of the term of his office or of any contract of service:

Provided  that  every  officer  or  employee  who  has  been,  immediately  before  the  dissolution  of  the 
Appellate Authority or the Board, appointed on deputation basis to the Appellate Authority or the Board, 
shall stand reverted to his parent cadre, Ministry or Department, as the case may be: 

Provided further that every officer or employee who has been, immediately before the dissolution of 
the Appellate Authority or the Board, employed on regular basis by the Appellate Authority or the Board, 
shall  become,  on  and  from  the  date  of  such  dissolution,  the  officer  and  employee,  respectively,  of  the 
Central Government with the same rights and privileges as to pension, gratuity and other like matters as 
would have been admissible to him if the rights in relation to such Appellate Authority or the Board had 
not been transferred to, and vested in, the Central Government and shall continue to do so unless and until 
his  employment  in  the  Central  Government  is  duly  terminated  or  until  his  remuneration,  terms  and 
conditions of employment are duly altered by that Government: 

Provided  also  that  notwithstanding  anything  contained  in  the  Industrial  Disputes  Act,  1947  (14  of 
1947), or in any other law for the time being in force, the transfer of the services of any officer or other 
employee, employed in the Appellate Authority or the Board, to the Central Government, shall not entitle 
such officer or employee to any compensation under this Act or any other law for the time being in force 
and no such claim shall be entertained by any court, tribunal or other authority:  

Provided  also  that  where  the  Appellate  Authority  or  the  Board  has  established  a  provident  fund, 
superannuation,  welfare  or  other  fund  for  the  benefit  of  the  officers  and  employees  employed  in  the 
Appellate Authority or the Board, the monies relatable to the officers and employees whose services have 
been transferred by or under this Act to the Central Government shall, out of the monies standing, on the 
dissolution of the Appellate Authority or the Board, to the credit of such provident fund, superannuation, 
welfare or other fund, stand transferred to, and vest in, the Central Government and such monies which 
stand so transferred shall be dealt with by that Government in such manner as may be prescribed; 

(b) On such date as may be notified by the Central Government in this behalf, any appeal preferred 
to  the  Appellate  Authority  or  any  reference  made  or  inquiry  pending  to  or  before  the  Board  or  any 
proceeding  of  whatever  nature  pending  before  the  Appellate  Authority  or  the  Board  under  the  Sick 
Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) shall stand abated: 

Provided that a company in respect of which such appeal or reference or inquiry stands abated under 
this  clause  may  make  reference  to  the  National  Company  Law  Tribunal  under  the  Insolvency  and 
Bankruptcy Code, 2016 within one hundred and eighty days from the commencement of the Insolvency 
and Bankruptcy Code, 2016 in accordance with the provisions of the Insolvency and Bankruptcy Code, 
2016:  

Provided  further  that  no  fees  shall  be  payable  for  making  such  reference  under  Insolvency  and 
Bankruptcy  Code,  2016  by  a  company  whose  appeal  or  reference  or  inquiry  stands  abated  under  this 
clause.

Provided  also  that  any  scheme  sanctioned  under  sub-section  (4)  or  any  scheme  under 
implementation  under  sub-section  (12)  of  section  18  of  the  Sick  Industrial  Companies  (Special 
Provisions) Act, 1985 shall be deemed to be an approved resolution plan under sub-section (1) of section 
31 of the Insolvency and Bankruptcy Code, 2016 and the same shall be dealt with, in accordance with the 
provisions of Part II of the said Code: 

Provided also that in case, the statutory period within which an appeal was allowed under the Sick 
Industrial Companies (Special Provisions) Act, 1985 against an order of the Board had not expired as on 
the date of notification of this Act, an appeal against any such deemed approved resolution plan may be 
preferred by any person before National Company Law Appellate Tribunal within ninety days from the 
date of publication of this order.

(c)  the  balance  of  all  monies  (including  any  fee)  received  by,  or  advanced  to  the  Appellate 
Authority or the Board, as the case may be, and not spent by it before the commencement of this Act 
shall, on the commencement of this Act, stand transferred to, and vest in, the Central Government and 
shall be utilised for the purposes of clauses (e) and (f); 

(d) all property of whatever kind owned by, or vested in, the Appellate Authority or the Board, as 
the  case  may  be,  and  not  spent  by  it  before  the  commencement  of  this  Act  shall,  on  the 
commencement of this Act, stand transferred to, and shall vest in the Central Government; 

(e)  all  liabilities  and  obligations  of  whatever  kind  incurred  by  the  Appellate  Authority  or  the 
Board  and  subsisting  immediately  before  the  commencement  of  this  Act  shall,  on  and  from  the 
commencement of this Act, be deemed to be the liabilities or obligations, as the case maybe, of the 
Central Government; and any proceeding or cause of action, pending or existing immediately before 
the commencement of this Act by or against the Appellate Authority or the Board in relation to such 
liability or obligation may, as from the commencement of this Act, be continued or enforced by or 
against the Central Government; 

(f) all monies vested in the Central Government under clause (c) shall, after deducting the amount 
incurred for discharging the liabilities and obligations referred to in that clause, be refunded by the 
Central Government to the person to whom such amount is due. 

5. **Saving.**—(1) The repeal by this Act of the repealed enactment shall not— 

(a) affect any other enactment in which the repealed enactment has been applied, incorporated or 
referred to; 

(b) affect the previous operation of the repealed enactment or anything duly done or suffered 
there under; 

(c) affect any right, privilege, obligation or liability acquired, accrued, or incurred under the 
repealed enactment; 

(d) affect any order made by the Board for sanction of the schemes; 

(e) affect the validity, invalidity, effect or consequences of anything already done or suffered, or 
any  right,  title,  obligation  or  liability  already  acquired,  accrued  or  incurred  or  any  remedy  or 
proceeding  in  respect  thereof  or  any  release  or  discharge  of  or  from  any  debt,  penalty,  obligation, 
liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing; 

(f) affect any  penalty,  forfeiture  or  punishment  incurred  in  respect  of  any  offence  committed 
against  the  repealed  enactment,  affect  any  investigation,  legal  proceedings  or  remedy  in  respect  of 
any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid, and any 
such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such 
privilege, forfeiture or punishment may be imposed as if this Act had not been passed; 

(g)  affect  any  principle  or  rule  of  law,  or  established  jurisdiction,  form  or  course  of  pleading, 
practice  or  procedure,  or  existing  usage,  custom,  privilege,  restriction,  exemption,  office  or 
appointment,  notwithstanding  that  the same  respectively  may  have  been  in  any manner  affirmed  or 
recognised or derived by, in, or from, the repealed enactment; 

(h) revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, 
exemption, usage, practice, procedure or other matter or thing not now existing or in force. 

(2) Save  as  otherwise  provided  in  section  4  and  in  sub-section  (1)  of  this  section,  the  mention  of 
particular matters in the said section and sub-section shall not be held to prejudice or affect the general 
application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeal. 

6. **Power to make rules.**—(1) The Central Government may, by notification, make rules for carrying 
out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 
provide for all or any of the following matters, namely:— 

	(a)  the  manner  in  which  the  monies  standing  to  the  credit  of  provident  fund,  superannuation, 
welfare or other fund of officers and employees on their transfer to the Central Government, shall be 
dealt with by that Government under the fourth proviso to clause (a) of section 4; 

	(b) any other matter which is to be, or may be, prescribed, or in respect of which provision is to 
be made, by rules. 

(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House 
of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be  comprised  in  one 
session  or  in  two  or  more  successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified form or be of no effect, as the case may be; so, however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously done under that rule.