In this paper, a sensorless output feedback controller is designed in order to drive the Induction Motor (IM) without the use of flux and speed sensors. Firstly, a new sliding mode observer that uses only the measured stator currents is synthesized to estimate the speed, the flux and the load torque. Secondly, a current-based field oriented sliding mode control is developed so as to steer the estimated speed and flux magnitude to the desired references. Stability analysis based on Lyapunov theory is also presented in order to guarantee the closed loop stability of the proposed observer-control system. Two experimental results for a 1.5-kW IM are presented and analyzed by taking into account the unobservability phenomena of the Sensorless Induction Motor (SIM).