As the Indian economy attempted to move from an agrarian economy and adopted economic plan to foster industrialization, major policies of the government, including legislative provisions, were directed to achieve rapid industrialization. With focus on industry and to provide basic legislative support for the development and regulation of industries, the Industries (Development and Regulation) Act was enacted in 1951. Formation and liquidation of business entities continued to be governed by the Companies Act/Partnership Act and other Insolvency Acts. However, in view of growing inadequacy of the then prevailing mechanism to deal with sickness and insolvency, the Sick Industrial Companies (Special Provisions) Act (SICA) of 1985 was enacte…
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