Sick Industrial Companies (Special Provisions) Act, 1985

3. Definitions

(1) In this Act, unless the context otherwise requires-

(a) "appellate authority" means the appellate authority for industrial and financial reconstruction constituted under section 5;

(b) "board" means the Board for Industrial and Financial Reconstruction established under section 4;

(c) "Chairman" means the Chairman of the Board, or as the case may be, the appellate authority;

(d) "company" means a company as defined in section 3 of the Companies Act, 1956 ¹[***];

² [(da) "date of finalization of the duly audited accounts" means the date on which the audited accounts of the company are adopted at the annual general meeting of the company;]

(e) "industrial company" means company which owns one or more industrial undertakings;

(f) "industrial undertakings" means any undertaking pertaining to a scheduled industry carried on in one or more factories by any company but does not include-

(i) an ancillary industrial undertaking as defined in clause (aa) of section 3 of the Industries (Development and Regulation) Act, 1951; and

(ii) a small scale industrial undertaking as defined in clause (j) of the aforesaid section 3;

(g) "member" means a member of the board or, as the case may be, the appellate authority and includes the Chairman thereof;

² [(ga) "net worth" means the sum total of the paid-up capital and free reserves.

Explanation:- For the purposes of this clause, "free reserves" means all reserves credited out of the profits and share premium account but does not include reserves credited out of re-evaluation of assets, write-back of depreciation provisions and amalgamation;]

(h) "notification" means a notification published in the Official Gazette.

³ [(i) "operating agency" means any public financial institution, State level institution, scheduled bank or any other person as may be specified by general or special order as its agency by the board;]

(j) "prescribed" means prescribed by rules made under this Act;

(k) [Omitted by Act 12 of 1994];

(l) "Reserve Bank" means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934;

(m) "scheduled bank" means a bank for the time being included in Schedule II to the Reserve Bank of India Act, 1934;

(n) "scheduled industry" means any of the industries specified for the time being in Schedule I to the Industries (Development and Regulation) Act, 1951;

³ [(o) "sick industrial company" means an industrial company (being a company registered for not less than five years) which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.

Explanation: For the removal of doubts, it is hereby declared that an industrial company existing immediately before the commencement of the Sick Industrial Companies (Special Provisions) Amendment Act, 1993, registered for not less than five years and having at the end of any financial year accumulated losses equal to or exceeding its entire net worth, shall be deemed to be a sick industrial company;]

(p) "State level institution" means any of the following institutions, namely,-

(i) State Financial Corporations established under section 3 or section 3A and institutions notified under section 46 of the State Financial Corporations Act, 1951 (63 of 1951);

(ii) State Industrial Development Corporations registered under the Companies Act, 1956 (1 of 1956);

(iii) Such other institutions, being companies and not being public financial institutions, engaged in the development or financing of industrial undertakings, as the Central Government may, by notification, specify:

PROVIDED that no institution shall be so specified unless not less than fifty-one per cent of the paid-up share capital thereof is held by any State Government or Governments or by any institution or institutions mentioned in sub-clauses (i) and (ii) or partly by one or more public financial institutions or institutions mentioned in sub-clauses (i) and (ii) and partly by one or more State Governments.

(2) (a) Words and expressions used and not defined in this Act shall have the meanings, if any, respectively assigned to them in the Companies Act, 1956.

(b) Words and expressions used but not defined either in the Act or in the Companies Act, 1956, shall have the meanings, if any, respectively assigned to them in the Industries (Development and Regulation) Act, 1951.

(3) Any reference in this Act to any other enactment or any provision thereof, shall, in relation to an area in which such enactment of such provision is not in force, be construed as a reference to the corresponding law or the relevant provision of the corresponding law, if any, in force in that area.

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