254. Application for revival and rehabilitation
(1) On the determination of a company as a sick company by the Tribunal under
section 253, any secured creditor of that company or the company may make an application
to the Tribunal for the determination of the measures that may be adopted with respect to the
revival and rehabilitation of such company:
Provided that in case any reference had been made before the Tribunal and a scheme
for revival and rehabilitation submitted, such reference shall abate if the secured creditors
representing three-fourths in value of the amount outstanding against financial assistance
disbursed to the borrower have taken measures to recover their secured debt under
sub-section (4) of section 13 of the Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002:
Provided further that no reference shall be made under this section if the secured
creditors representing three-fourths in value of the amount outstanding against financial
assistance disbursed to the borrower have taken measures to recover their secured debt
under sub-section (4) of section 13 of the Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002:
Provided also that where the financial assets of the sick company had been acquired
by any securitisation company or reconstruction company under sub-section (1) of section
5 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002, no such application shall be made without the consent of securitisation
company or reconstruction company which has acquired such assets.
(2) An application under sub-section (1) shall be accompanied by—
(a) audited financial statements of the company relating to the immediately
preceding financial year;
(b) such particulars and documents, duly authenticated in such manner, along
with such fees as may be prescribed; and
(c) a draft scheme of revival and rehabilitation of the company in such manner as
may be prescribed:
Provided that where the sick company has no draft scheme of revival and rehabilitation
to offer, it shall file a declaration to that effect along with the application.
(3) An application under sub-section (1) shall be made to the Tribunal within a period
of sixty days from the date of determination of the company as a sick company by the
Tribunal under section 253.