REVIVAL AND REHABILITATION OF SICK INDUSTRIAL

COMPANIES
(This rough draft is submitted in partial fulfilment of course Company Law for obtaining the
degree B.B.A., LL.B. (Hons.) during the academic year 2021-2022.)

SUBMITTED BY:

AASTHA PRAKASH

B.B.A., LL.B. (Hons.)

ROLL NO: 2002

SEMESTER: 7th

SUBMITTED TO:

MRS. NANDITA JHA

FACULTY OF COMPANY LAW

AUGUST, 2021

CHANAKYA NATIONAL LAW UNIVERSITY, NYAYA NAGAR, MITHAPUR,

PATNA- 800001.
INTRODUCTION:
The Ministry of Corporate Affairs has formulated the framework for Revival and Rehabilitation
of Sick Companies under the Companies Act, 2013. This framework intends to timely detect the
sickness and take appropriate measures for revival of sick companies.

Chapter XIX of the 2013 Act lays down the provisions for the revival and rehabilitation of sick
companies.  The chapter describes the circumstances which determine the declaration of a
company as a sick company and also includes the rehabilitation process of the same. Although it
aims to provide comprehensive provisions for the revival and rehabilitation of sick companies,
the fact that several provisions such as particulars, documents as well as the content of the draft
scheme in respect of an application for revival and rehabilitation, etc. have been left to
substantive enactment, leaves scope for interpretation.

OBJECTIVES
The researcher has the following objectives:

 To analyze and find out the meaning of the term ‘sick companies.
 To analyze and trace available statutory law and Governmental Guidelines, with a view
to find law regarding Sickness of Companies.
 To find out the required solution for the revival and rehabilitation of such companies.

HYPOTHESIS
The Indian Legal Framework has gone through various amendments regarding the regulation of
Sick Industries which resulted in to the coming up of bulk legislation but in the recent years a
new and uniform law has been enacted which has rendered all the past statutes as repealed. The
new Code aims to be a persuasive, sufficient and efficient single legislation for the regulation of
Sick Industries.

RESEARCH METHODOLOGY
The research work is based on doctrinal method. It includes only secondary sources of data.
LIMITATIONS
Area of limitations – Every study has own limitation due to the limited time, lack of sufficient
financial sources and limited area of survey/study of the subject matter.

TENTATIVE CHAPTERISATION
1. Introduction
2. Sick Company: Determination under Companies Act, 2013 and Meaning
3. Legislations on Revival of Companies
4. Application for Revival and Rehabilitation
5. Overview Of the Process and Procedure Involved
6. Conclusion

BIBLIOGRAPHY:
BOOKS

1. Avtar Singh, Company Law (Eastern Book Company, 17th Ed., 2018). 

WEBSITES

1. https://bnblegal.com/article/revival-and-rehabilitation-of-sick-companies-journey-from-
sica-1985-to-ibc-2016/
2. https://blogs.compliancecalendar.in/revival-and-rehabilitation-of-sick-companies-by-cs-
tripti-chugh-141