POWERS OF TRIBUNAL TO MAKE SUITABLE ORDER OF INQUIRY ON COMPLETION.
If after making an inquiry under section 424B, the Tribunal is satisfied that a company has become a sick industrial company, the Tribunal shall, after considering the relevant facts of all and the case circumstances, decide, as soon as may be, by an order in writing, whether it is practicable for the company to make its net worth exceed the accumulated losses or make its debts repayment referred to in clause (b) of sub-section (2) of section 424A within a reasonable time.
If the Tribunal decides under sub-section(1) that it is not practicable for a sick industrial company to make its net worth exceed its debts pay or accumulated losses referred to it in that sub-section within a reasonable time, the Tribunal shall, by in the writing order and subject to such conditions or restrictions as may be specified in the order, give such time to the company as it may deem fit to make its net worth exceed the accumulated losses or make repayment debts.
If the Tribunal decides under sub-section(1) that it is not practicable for industrial sick company to make its net worth exceed the accumulated losses or make the repayment of the debts referred to in clause (b) of sub-section (2) of section 424 A, within a reasonable time and that it is important or expedient to adopt in the public interest all or any of the specified measures in section 424D in relation to the said company it may, as soon as may be, by order in writing, direct any operating agency indicated to prepare in the order, having regard to such guidelines as may be specified in the order to prepare, having regard to such guidelines as may be specified in the order, a providing scheme for such measures to such company in relation.
The Tribunal may,
a, if any of the conditions or restrictions specified in an order made under sub-section (2) are not compiled with by the concerned company, or if the company fails to revive in the pursuance of the said order, such order review in that behalf on a reference from any agency referred to in sub-section(3) of section 424A or on its own motion and pass a pure order in accordance of that company under sub-section(3);
if the operating agency specified in the order made under sub-section (3) makes the submission in that behalf, such order review and modify the order in such manner as it may deem appropriate.
424 D. Schemes sanction and preparation.
An order that was made under sub-section(3) of section 424C in relation to any sick industrial company, the operating agency specified in the order shall prepare as expeditiously as possible and within sixty days period ordinarily from the date of such order, having regard to the framed guidelines by the Reserve Bank of India in this behalf, a scheme with respect to such company providing for any one or more of the following measures, namely:-
the industrial company financial reconstruction;
the proper management of such industrial company by change in, or takeover of, such industrial company management;
the amalgamation of-
I, such an industrial company with any other company or
any other company with such industrial company (hereafter in this section, in the sub-clause (i) case, the other company and of sub-clause (II) in the case, such industrial company referred to as “transferee-company”;
the sale or lease part or the whole of any industrial undertaking of such an industrial company ;
the rationalisation of personnel managerial, supervisory staff and workmen in accordance with law;
such other ameliorative preventive and as may be appropriate remedial measures;
debt repayment;
such incidental, supplemental and consequential measures as may be necessary or expedient in connection with or for the purposes of the specified measures in clauses (a) to (g)
Given that the Tribunal may exceed the mentioned period of sixty days to ninety days for writing with reasons to be recorded for such extension.
In sub-section (1) the referred scheme may issue for one or more of the following, namely:-
the constitution, registered office, name, powers, the assets, interests, rights, the capital, privileges, duties and the sick industrial company obligations or, of the transferee-company case;
the transfer to the business transferee-company, assets, properties and company liabilities of sick industrial as may be specified in the scheme on such terms and conditions ;
In the Board of directors any change, or appointment of new board directors, of the sick industrial company and by whom the authority, in which the manner and the other terms and the conditions on that appointment or shall be made change and in the directors case appointment of a new board or of any director, for which such appointment shall be made the period;
the alteration of memorandum or association articles of the sick industrial company or, as the case may be, for altering the purpose of the transferee-company the capital structure thereof, or for such other purposes as may be important to give to the amalgamation effect or the reconstruction;
the continuation by, or the sick industrial company against or, as the case may be, any action of the transferee-company or other legal proceeding pending against the sick industrial company immediately before made the order date under sub-section (3) of section 424C;
the reduction of the rights or interest which the shareholders have in the sick industrial company to such extent as the Tribunal considers important in the interests of the reconstruction, rehabilitation or debts repayment of such sick industrial company or for the business maintenance of such industrial company;
the shareholders allotment of the sick industrial company, of shares in such company or, as the case may be, in the transferee-company and where any shareholder claims payment in cash or not allotment shares, or where it is not possible to shares allot to any shareholder, the payment of cash to those shareholders of their claims in full satisfaction-
in respect of their shares interest in the sick industrial company before its reconstruction or amalgamation of the sick industrial company;
the undertaking of the industrial sale of the sick industrial company free from all encumbrances and the liabilities of the company or such encumbrances and as may be specified liabilities, to any person, including a co-operative society formed of such undertaking by the employees and reserve price fixing for such sale;
lease of the undertaking industrial of the sick industrial company free from all encumbrances and all the company liabilities or other such encumbrances and the liabilities as may be specified, to any person, including a co-operative society formed of such undertaking by the employees and reserve price fixing for such sale
