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 (54 of 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 (54
of 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 (54 of 2002), no
such application shall be made without the consent of securitization 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.
