BIFR as a sick company and registered
11.03.2003 BIFR case No.158/2001.
11 03.08.2005 Company declared sick in terms of section ... closed down the factory. Thereafter, the company filed a
reference to BIFR and the company was declared sick by BIFR on 03.08.2005. BIFR after
circulating
Board of Directors' of Sick Companies used to form opinion
that a Company had become a Sick Industrial Company, the Board of
Directors were ... Companies Act, 1956 ;
Company Appeals (AT) (Insolvency) Nos. 160 and 258 of 2017
7
(ii) which had become a sick industrial company as
defined
132COMPCAS55(CLB), (2006)2COMPLJ389(CLB), [2006]71SCL239(CLB)
ORDER
S. Balasubramanian, Chairman
1. M/S Pasupati Fabrics Limited (the company) is a listed company incorporated ... been mismanaging the affairs of the company including siphoning of funds due to which the company had become sick and had to be referred
material on record the appellant is a sick company for
the year under challenge and the net worth has become negative for
the year under ... company has negative networth and has become sick
under the repealed Act- Sick Industrial Companies (Special
Provisions) Act, 1985 . Issuance of certificate
assessee is a sick industrial company. But the assessing
officer is of the opinion that the assessee company became sick
unit during the assessment year ... company during the period of
sickness. In both cases, the obvious legislative intent is to
provide sick companies with relief from certain rigours of income
special Act which was enacted with a view of rehabilitate the sick companies by preparing schemes for their rehabilitation and it provides that till such ... preamble manifests, with a view to timely detection of sick or potentially sick companies owing industrial undertakings, the identification of the nature of sickness through
depreciation instead of allowing the exemption
available to sick unit under Sick Industrial Companies Act, 1985 , while
computing Book Profit.
3. The learned ... depreciation instead of allowing the exemption
available to sick unit under Sick Industrial Companies Act, 1985 , while
computing Book Profit.
4. The learned
appreciating the fact that the appellant assessee
was declared as a sick company under the Sick Industrial Companies (Special
Provisions) Act, 1985 ('SICA ... 115JB, without
appreciating the fact that the appellant was a sick company under
BIFR and accumulates losses is still not recouped. Hence, it is
exempt
mismanagement and instances of diversion of funds of the company resulting in the company becoming sick. It is alleged in the reference that such acts ... Shri Ganesh, advocates for the directors of the company, submitted that the company having become sick and being under the purview of the BIFR
company, which is credited to the profit
and loss account is to be deducted from the profit. The
appellant company was declared as sick industrial ... Sick Industrial Companies (Special
Provisions) Act, 1985 by the BIFR vide order, dated
22.01.2003. Since, the appellant company is a sick industrial
company
