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

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.

 

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 of

1986), 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.

 

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(hereinafter referred to as the repealed enactment) is hereby repealed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.

 

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) any appeal preferred to the Appellate Authority or any reference

made to the Board or any inquiry pending before the Board or any other

authority or any proceeding of whatever nature pending before the

Appellate Authority or the Board immediately before the commencement of

this Act shall stand abated:

Provided that a company:-

(i) in respect of which such appeal or reference or inquiry stand

abated under this clause may make a reference under PART VIA of the

Companies Act, 1956 (1 of 1956) within one hundred and eighty days from

the commencement of this Act in accordance with the provisions of the

Companies Act, 1956;

(ii) which had become a sick industrial company as defined in clause

(46AA) of section 2 of the Companies Act, 1956 (1 of 1956), before the

commencement of the Companies (Second Amendment) Act, 2002 (11 of 2003)

may make a reference under PART VIA of the Companies Act, 1956 within

one hundred and eighty days from the commencement of the Companies

(Second Amendment) Act, 2002 or within sixty days of final adoption of

accounts after such commencement,

whichever is earlier,

and reference so made shall be dealt with in accordance with the

provisions of the Companies Act, 1956 (1 of 1956):

Provided further that no fee shall be payable for making such reference

under PART VIA of the Companies Act, 1956 (1 of 1956) by a company

whose appeal or reference or inquiry stand 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

repealed enactment shall be deemed to be a scheme sanctioned or under

implementation under section 424D of the Companies Act, 1956 (1 of

1956) and shall be dealt with in accordance with the provisions

contained in PART VIA of that Act;

(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 may

be, 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.

 

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 thereunder;

(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.

 

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.