As per the Companies Act, 1956
Sick industrial company
means an industrial company which has-
(i) the accumulated losses in any financial
year equal to fifty per cent, or more of its average
net worth during four years immediately preceding such
financial year; or
(ii) failed to repay its debts within
any three consecutive quarters on demand made in writing
for its repayment by a creditor or creditors of such
company.
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