2.

What are the differences/similarities between scheme of

arrangement, corporate voluntary mechanism, judicial management and
winding up in terms of the followings:

Scheme Of Corporate Voluntary Judicial Management

Arrangement Mechanism
Management S.395: Voluntary S.404: An application for
of Company arrangement is a Company to be placed
proposed to under a JM may be made
restructure the to the Court
company’s debts
under the supervision
of an insolvency
practitioner
Moratorium S.398(1): Moratorium S.410(C) CA: Moratorium
commences automatically once the
automatically upon application is made. It
filing of the will end with the making
documents, no need of judicial management
for court order order or dismissal of the
application.
Duration of 30 days Para 3 of 8th S.410: Moratorium
any Schedule: Duration & commences
moratorium Extension of automatically once the
Memorandum application is made. It
will end with the making
of judicial management
order or dismissal of the
application
Approval from S.366(2): Creditors S.400(2): Requires S.422: A committee of
creditors holding 75% of the 75% of the total value creditors may be
total value of the of the creditors appointed by creditors to
debts present of the present and voting oversee the judicial
debts present at the manager. Consent of
meeting may 75% in value of the
approve the court creditors is to be
ordered meeting obtained
Court order for S.366: Court may on S.401(1):The S.405: Court can make a
the process application order a Supervisor would be judicial management
meeting responsible for the order and appoint a
implementation of judicial manager
the proposal
S.406(1): JM order is
S.401(4): If creditors valid for 6 months unless
 or any person discharged earlier.
dissatisfied may The Court may on the
appeal to court application of the JM
grant an extension of a
S.581: Power of court further 6 months
to grant relief

Disposal of S.368(4): Unless the No legal proceedings S.426(2): Transfer or

secured assets court orders can be taken against assignment of the
otherwise, any the company or its company’s property to
disposition of the property except with trustee for the benefit of
property of the leave of court. all its creditors should be
company made void
after that grant of
the restraining
order by the court
shall be void