Before the Insolvency and Bankruptcy Code, 2016 took over the field, the revival and rehabilitation of loss-making manufacturing units were handled by a quasi-judicial board set up under which…
Question and options
Before the Insolvency and Bankruptcy Code, 2016 took over the field, the revival and rehabilitation of loss-making manufacturing units were handled by a quasi-judicial board set up under which enactment?
Industries (Development and Regulation) Act, 1951
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
Sick Industrial Companies (Special Provisions) Act, 1985
Recovery of Debts Due to Banks and Financial Institutions Act, 1993
Answer and explanation
The Sick Industrial Companies (Special Provisions) Act, 1985 set up the Board for Industrial and Financial Reconstruction (BIFR) to deal with the revival of sick industrial companies. The SICA Repeal Act, 2003, as amended by the Eighth Schedule to the Insolvency and Bankruptcy Code, 2016, came into force on 1 December 2016, dissolving BIFR and abating pending references. The 1993 Act created Debts Recovery Tribunals for the recovery of bank debts, not for the revival of companies.
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