Section 20: Winding up of sick industrial company .- [(1) Where the Board, after making inquiry under section 16 and after consideration of all the relevant facts and circumstances and after giving an opportunity of being heard to all concerned parties, is of opinion that the sick industrial company is not likely to make its net worth exceed the accumulated losses within a reasonable time while meeting all its financial obligations and that the company as a result thereof is not likely to become viable in future and that it is just and equitable that the company should be wound up, it may record and forward its opinion to the concerned High Court.]

Q: What does Section 20 of The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) deal with?

Section 20 SICA pertains to "Winding up of sick industrial company .- [(1) Where the Board, after making inquiry under section 16 and after consideration of all the relevant facts and circumstances and after giving an opportunity of being heard to all concerned parties, is of opinion that the sick industrial company is not likely to make its net worth exceed the accumulated losses within a reasonable time while meeting all its financial obligations and that the company as a result thereof is not likely to become viable in future and that it is just and equitable that the company should be wound up, it may record and forward its opinion to the concerned High Court.]". It is part of the The Sick Industrial Companies (Special Provisions) Act, 1985, a legislation enacted by the Parliament of India. Section 20 of The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) governs winding up of sick industrial company .- [(1) Where the Board, after making inquiry under section 16 and after consideration of all the relevant facts and circumstances and after giving an opportunity of being heard to all concerned parties, is of opinion that the sick industrial company is not likely to make its net worth exceed the accumulated losses within a reasonable time while meeting all its financial obligations and that the company as a result thereof is not likely to become viable in future and that it is just and equitable that the company should be wound up, it may record and forward its opinion to the concerned High Court.]. As verified on 19 May 2026.

Q: Is Section 20 SICA still in force?

Yes, Section 20 of the The Sick Industrial Companies (Special Provisions) Act, 1985 is currently in force across the Republic of India.

Q: What is धारा 20 SICA?

धारा 20 SICA is the Devanagari Hindi reference for Section 20 of the The Sick Industrial Companies (Special Provisions) Act, 1985. Section 20 of The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) governs winding up of sick industrial company .- [(1) Where the Board, after making inquiry under section 16 and after consideration of all the relevant facts and circumstances and after giving an opportunity of being heard to all concerned parties, is of opinion that the sick industrial company is not likely to make its net worth exceed the accumulated losses within a reasonable time while meeting all its financial obligations and that the company as a result thereof is not likely to become viable in future and that it is just and equitable that the company should be wound up, it may record and forward its opinion to the concerned High Court.]. As verified on 19 May 2026.

Q: What is Dhara 20 SICA?

Dhara 20 SICA is the Roman Hindi reference for Section 20 of the The Sick Industrial Companies (Special Provisions) Act, 1985. "Dhara" means "Section" in Hindi. Section 20 of The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) governs winding up of sick industrial company .- [(1) Where the Board, after making inquiry under section 16 and after consideration of all the relevant facts and circumstances and after giving an opportunity of being heard to all concerned parties, is of opinion that the sick industrial company is not likely to make its net worth exceed the accumulated losses within a reasonable time while meeting all its financial obligations and that the company as a result thereof is not likely to become viable in future and that it is just and equitable that the company should be wound up, it may record and forward its opinion to the concerned High Court.]. As verified on 19 May 2026.

Q: How to cite Section 20 of The Sick Industrial Companies (Special Provisions) Act, 1985?

Cite as: "Section 20, The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA)" in legal briefs. For academic writing, use the BlueBook format: The Sick Industrial Companies (Special Provisions) Act, 1985, § 20 (India).

Law on Tips Editorial Board

§16

Inquiry into working of sick industrial companies .-(1) The Board may make such inquiry as it may deem fit for determining whether any industrial company has become a sick industrial company

SICA

§18

Preparation and sanction of schemes .-(1) Where an order is made under sub-section (3) of section 17 in relation to any sick industrial company, the operating agency specified in the order shall prepare, as expeditiously as possible and ordinarily within a period of ninety days from the date of such order, a scheme with respect to such company providing for any one or more of the following measures, namely:

SICA

§22

Suspension of legal proceedings, contracts, etc .-(1) Where in respect of an industrial company, an inquiry under section 16 is pending or any scheme referred to under section 17 is under preparation or consideration or a sanctioned scheme is under implementation or where an appeal under section 25 relating to an industrial company is pending, then, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or any other law or the memorandum and articles of association of the industrial company or any other instrument having effect under the said Act or other law, no proceedings for the winding up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof [and no suit for the recovery of money or for the enforcement of any security against the industrial company or of any guarantee in respect of any loans or advance granted to the industrial company] shall lie or be proceeded with further, except with the consent of the Board or, as the case may be, the Appellate Authority

SICA

§15

Reference to Board .-(1) Where an industrial company has become a sick industrial company, the Board of Directors of the company shall, within sixty days from the date of finalisation of the duly audited accounts of the company for the financial year as at the end of which the company has become a sick industrial company, make a reference to the Board for determination of the measures which shall be adopted with respect to the company:

SICA

§21

Operating agency to prepare complete inventory, etc .-Where, [for the proper discharge of the functions of the Board under this Act], the circumstances so require, the Board may, through any operating agency, cause to be prepared

SICA

§17

Powers of Board to make suitable order on the completion of inquiry .-(1) If after making an inquiry under section 16, the Board is satisfied that a company has become a sick industrial company, the Board shall, after considering all the relevant facts and circumstances of the case, decide, as soon as may be, by order in writing, whether it is practicable for the company to [make its net worth exceed the accumulated losses] within a reasonable time

SICA