law: Companies Act, 2013 
  Chapter
  
  XIX
  Revival
  
  and Rehabilitation of Sick Companies
  253.
  
    Determination
  
  of sickness.
  1.      Where on a demand by
  
  the secured creditors of a company representing fifty per cent. or more of its
  
  outstanding amount of debt, the company has failed to pay the debt within a
  
  period of thirty days of the service of the notice of demand or to secure or
  
  compound it to the reasonable satisfaction of the creditors, any secured
  
  creditor may file an application to the Tribunal in the prescribed manner along
  
  with the relevant evidence for such default, non-repayment or failure to offer
  
  security or compound it, for a determination that the company be declared as a
  
  sick company.
  2.      The applicant under
  
  sub-section (1 ) may, along with an application under that subsection or
  
  at any stage of the proceedings thereafter, make an application for the stay of
  
  any proceeding for the winding up of the company or for execution, distress or
  
  the like against any property and assets of the company or for the appointment
  
  of a receiver in respect thereof and that no suit for the recovery of any money
  
  or for the enforcement of any security against the company shall lie or be
  
  proceeded with.
  3.      The Tribunal may pass
  
  an order in respect of an application under sub-section (2 ) which shall
  
  be operative for a period of one hundred and twenty days.
  4.      The company referred
  
  to in sub-section (1 ) may also file an application to the Tribunal on
  
  one or more of the grounds specified in sub-sections (1 ) and (2 )
  
  above.
  5.      Without prejudice to
  
  the provisions of sub-sections (1 ) to (4 ), the Central Government
  
  or the Reserve Bank of India or a State Government or a public financial
  
  institution or a State level institution or a scheduled bank may, if it has
  
  sufficient reasons to believe that any company has become, for the purposes of
  
  this Act, a sick company, make a reference in respect of such company to the
  
  Tribunal for determination of the measures which may be adopted with respect to
  
  such company:
  Provided
  
  that a reference shall not be made under this sub-section in respect of any
  
  company by—
  a.     
  
    the
  
  Government of any State unless all or any of the undertakings belonging to such
  
  company are situated in such State;
  b.    
  
    a
  
  public financial institution or a State level institution or a scheduled bank
  
  unless it has, by reason of any financial assistance or obligation rendered by
  
  it, or undertaken by it, with respect to such company, an interest in such
  
  company.
  1.     
  2.     
  3.     
  4.     
  5.     
  6.      Where an application
  
  under sub-section (1 ) or sub-section (4 ) has been filed,—
  a.     
  
    the
  
  company shall not dispose of or otherwise enter into any obligation with regard
  
  to, its properties or assets except as required in the normal course of
  
  business;
  b.    
  
    the
  
  Board of Directors shall not take any steps likely to prejudice the interests
  
  of the creditors.
  7.      The Tribunal shall,
  
  within a period of sixty days of the receipt of an application under
  
  sub-section (1 ) or sub-section (4 ), determine whether the company
  
  is a sick company or not:
  Provided
  
  that no such determination shall be made in respect of an application under
  
  sub-section (1 ) unless the company has been given notice of the
  
  application and a reasonable opportunity to reply to the notice within thirty
  
  days of the receipt thereof.
  1.     
  2.     
  3.     
  4.     
  5.     
  6.     
  7.     
  8.      If the Tribunal is
  
  satisfied that a company has become a sick company, the Tribunal shall, after
  
  considering all the relevant facts and circumstances of the case, decide, as
  
  soon as may be, by an order in writing, whether it is practicable for the
  
  company to make the repayment of its debts referred to in sub-section (1 )
  
  within a reasonable time.
  9.      If the Tribunal deems
  
  fit under sub-section (8 ) that it is practicable for a sick company to
  
  pay its debts referred to in that sub-section within a reasonable time, the
  
  Tribunal shall, by order in writing and subject to such restrictions or
  
  conditions as may be specified in the order, give such time to the company as
  
  it may deem fit to make repayment of the debt.