Determination of sickness (in brief) 1- where the Secured Creditor of the company demand for its debts and the company failed to repay demand. the Secured Creditors may make application to Tribunal. 2- the demand by the secured creditors must be represented 50 % or more due outstanding amount of debts. 3-the application as mentioned in subsection (1) along with application made under this section to stay of any proceeding of winding up. 4- the Tribunal may pass the order which shall be effective for a period of 120 days 5-if Reserve Bank of India, State Government or public Financial Institution or state level Institution satisfies that the company is sick under this section, make reference to Tribunal in this regard 6-the application filed under section (1)and (4), in that case the company shall not dispose of or not enter into any obligation etc. expect the normal course of business, and the board shall not take any step which is prejudice to the interest of creditors. 7-the Tribunal shall determine whether the company is sick or not within 60 days from the date of application is received. 8- no determination shall be made, if the company has not make reply of notice which is send by the Tribunal within 30 days from the date of Application 9-if the Tribunal is satisfied that company is sick, it can take necessary steps in this regard 10-if Tribunal think fit that the debts may be paid and it is practicable to pay, Tribunal may pass order for making payment within such period according to order. (Clause 253 of new Companies Bill, 2012)
Posted on: Thu, 01 Aug 2013 23:30:34 +0000
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