1. The petitioner by way of this writ petition raises an interesting and important question with regard to interpretation of Section 19, more particularly Section 19(4) of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as the „Act? or „SICA?). The proposition which is sought to be canvassed on behalf of the petitioner is that even if one of the secured creditors refuses to give consent to a scheme which provides for financial assistance to a sick company, then, a sanctioned scheme has necessarily to be framed by resorting to other measures as specified under Section 18 without allowing the company the benefit of financial assistance as envisaged under Section 19(1) of the Act. Putting it differently, it is contended that though majority of the secured creditors agree for financial assistance in the form of concessions to be granted to a sick industrial company for the purpose of revival and rehabilitation of the sick company, yet, such majority secured creditors can be overridden by a minority secured creditor who refuses to give consent to a scheme which involves financial assistance in the form of concessions and reduction of the dues of a sick industrial company to its secured creditors.

2. To appreciate the question involved, before proceeding ahead, it is necessary to refer to certain provisions of SICA which are as under:

“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:

Provided that if the Board of Directors had sufficient reasons even before such finalisation to form the opinion that the company had become a sick industrial company, the Board of Directors shall, within sixty days after it has formed such opinion, make a reference to the Board for the determination of the measures which shall be adopted with respect to the company:

Provided further that no reference shall be made to the Board for Industrial and Financial Reconstruction after the commencement of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, where financial assets have been acquired by any securitisation company or reconstruction company under sub-section (1) of Section 5 of that Act:

Provided also that on or after the commencement of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, where a reference is pending before the Board for Industrial and Financial Reconstruction, such reference shall abate if the secured creditors, representing not less than three-fourth in value of the amount outstanding against financial assistance disbursed to the borrower of such secured creditors, have taken any measures to recover their secured debt under sub-section (4) of Section 13 of that Act.”

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“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—

(a) upon receipt of a reference with respect to such company under Section 15; or

(b) upon information received with respect to such company or upon its own knowledge as to the financial condition of the company.

(2) The Board may, if it deems necessary or expedient so to do for the expeditious disposal of an inquiry under sub-section (1), require by order any operating agency to enquire into and make a report with respect to such matters as may be specified in the order.

(3) The Board or as the case may be, the operating agency shall complete its inquiry as expeditiously as possible and endeavour shall be made to complete t