Schedule 8 of The Insolvency and Bankruptcy Code, 2016.
↩1.Ins. by Notification No. S.O. 1683(E) dated 24th May 2017.
THE EIGHTH SCHEDULE (See section 252) AMENDMENT TO THE SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) REPEAL ACT, 2003 (1 OF 2004) In section 4, for sub-clause (b), the following sub-clause shall be substituted, namely— “(b) On such date as may be notified by the Central Government in this behalf, any appeal preferred to the Appellate Authority or any reference made or inquiry pending to or before the Board or any proceeding of whatever nature pending before the Appellate Authority or the Board under the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) shall stand abated: Provided that a company in respect of which such appeal or reference or inquiry stands abated under this clause may make reference to the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 within one hundred and eighty days from the commencement of the Insolvency and Bankruptcy Code, 2016 in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016: Provided further that no fees shall be payable for making such reference under Insolvency and Bankruptcy Code, 2016 by a company whose appeal or reference or inquiry stands abated under this clause. 1[Provided also that any scheme sanctioned under sub-section (4) or any scheme under implementation under sub-section (12) of section 18 of the Sick Industrial Companies (Special Provisions) Act, 1985 shall be deemed to be an approved resolution plan under sub-section (1) of section 31 of the Insolvency and Bankruptcy Code, 2016 and the same shall be dealt with, in accordance with the provisions of Part II of the said Code: Provided also that in case, the statutory period within which an appeal was allowed under the Sick Industrial Companies (Special Provisions) Act, 1985 against an order of the Board had not expired as on the date of notification of this Act, an appeal against any such deemed approved resolution plan may be preferred by any person before National Company Law Appellate Tribunal within ninety days from the date of publication of this order.]” 128
Summary
- The Eighth Schedule of the 2016 bankruptcy law amends the Sick Industrial Companies (Special Provisions) Repeal Act, 2003.
- It mandates that any appeal, reference, or inquiry pending before the Board or the Appellate Authority under SICA shall stand abated on a date notified by the Central Government.
- It deems any scheme sanctioned or under implementation under SICA as an approved resolution plan under Section 31(1) of the Insolvency and Bankruptcy Code, 2016.
- It provides a ninety-day window to prefer an appeal before the National Company Law Appellate Tribunal against such deemed approved schemes if the original SICA appeal period had not expired.
Practical examples
FAQ
1. What happens to pending SICA references and appeals under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016?
Under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016, all pending SICA references, inquiries, and appeals before the Board or the Appellate Authority shall stand abated on a date notified by the Central Government.
2. Within how many days can a company whose SICA reference has abated apply to the National Company Law Tribunal under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016?
A company whose reference has abated can make a reference to the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 within one hundred and eighty days from the commencement of the Code.
3. Are there any fees payable for making a reference to the National Company Law Tribunal under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016?
No, under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016, no fees shall be payable by a company whose SICA appeal, reference, or inquiry stood abated.
4. What is the legal status of an already sanctioned SICA scheme under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016?
Under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016, any SICA scheme sanctioned or under implementation shall be deemed to be an approved resolution plan under Section 31(1) of the Insolvency and Bankruptcy Code, 2016.
5. What is the time limit for filing an appeal before the National Company Law Appellate Tribunal against a deemed approved resolution plan under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016?
An appeal against such a deemed approved resolution plan may be preferred before the National Company Law Appellate Tribunal within ninety days from the date of publication of the order, provided the original SICA appeal period had not expired.
Test yourself
Q1.Under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016, an abated SICA reference is made to the National Company Law Tribunal. How does this compare to individual insolvency references under the Fifth Schedule of the same Code?
Q2.Under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016, what happens to a rehabilitation scheme that was already sanctioned under SICA before the abatement of proceedings?
Q3.If a company's reference under SICA abates, within how many days can they make a new reference to the National Company Law Tribunal under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016?
Q4.Under the Eighth Schedule of the Insolvency and Bankruptcy Code, 2016, what is the appeal window for a person wanting to appeal a deemed approved resolution plan before the National Company Law Appellate Tribunal?