The scheme for revival and rehabilitation of sick industrial companies under the Sick Industrial Companies (Special Provisions) Act, 1985 having failed to achieve its basic objective of tackling industrial sickness in the innumerable loss making companies in our country, the Central Government set up a High Level Committee under the Chairmanship of Justice Balkrishna Eradi in 1999. The objective of this Committee was to remodel our insolvency laws in line with the latest developments and innovations in corporate law and governance and to suggest reforms in the procedure at various stages followed in the insolvency proceedings of companies to avoid unnecessary delays. The recommendations of the Committee regarding the same have been incorporated in Part VI-A of the Companies Act. This article examines as to how far the drawbacks of SICA have been addressed in the new scheme and what new problems have cropped up as a result of the introduction of Part VI-A in the Companies Act, < ....