application and coverage of SI CA 1985
Answers
The Sick Industrial Companies Act (SICA) was a key piece of legislation dealing with the issue of rampant industrial sickness in India. SICA was enacted in India to detect sick or potentially sick companies owning industrial undertakings, and their revival, if possible, or their closure, if not. This measure was taken to release investment locked up in sick companies for productive use elsewhere.
BREAKING DOWN Sick Industrial Companies Act (SICA)
The Sick Industrial Companies Act (SICA) was enacted to address a chronic probem in the Indian economy: industrial sickness.
Sick Industrial Units
SICA, also known as The Sick Industrial Companies (Special Provisions) Act, 1985, defined a sick industrial unit as one that had existed for at least five years and had incurred accumulated losses equal to or exceeding its entire net worth at the end of any financial year.