Scheme of revival and rehabilitation

Sec 261 of the Companies Act 2013

 

(1) The company administrator shall prepare or cause to be
prepared a scheme of

revival and rehabilitation of the sick company after considering
the draft scheme filed along with the application under section 254.

 

(2) A scheme prepared in relation to any sick company under
sub-section (1) may

provide for any one or more of the following measures, namely:—

(a) the financial reconstruction of the sick company;

(b) the proper management of the sick company by any change
in, or by taking over, the management of such company;

(c) the amalgamation of—

(i) the sick company with any other company; or

(ii) any other company with the sick company;

(d) takeover of the sick company by a solvent company;

(e) the sale or lease of a part or whole of any asset or
business of the sick

company;

(f) the rationalisation of managerial personnel,
supervisory staff and workmen in accordance with law;

(g) such other preventive, ameliorative and remedial
measures as may be

appropriate;

(h) repayment or rescheduling or restructuring of the debts
or obligations of the sick company to any of its creditors or class of
creditors;

(i) such incidental, consequential or supplemental measures
as may be necessary or expedient in connection with or for the purposes of the
measures specified in clauses (a) to (h).

 

Appointment of interim administrator

Sec 256 of the Companies Act 2013

 

(1) On the receipt of an application under section 254, the
Tribunal shall, not later than seven days from such receipt,—

(a) fix a date for hearing not later than ninety days from
date of its receipt;

(b) appoint an interim administrator to convene a meeting
of creditors of the company in accordance with the provisions of section 257 to
be held not later than forty-five days from receipt of the order of the
Tribunal appointing him to consider whether on the basis of the particulars and
documents furnished with the application made under section 254, the draft
scheme, if any, filed along with such application or otherwise and any other
material available, it is possible to revive and rehabilitate the sick company
and such other matters, which the interim administrator may consider necessary
for the purpose and to submit his report to the Tribunal within sixty days from
the date of the order:

 

Provided that where no draft scheme is filed by the company and a declaration
has been made to that effect by the Board of Directors, the Tribunal may direct
the interim administrator to take over the management of the company; and

(c) issue such other directions to the interim
administrator as the Tribunal may consider necessary to protect and preserve
the assets of the sick company and for its proper management.

 

(2) Where an interim administrator has been directed to
take over the management of the company, the directors and the management of
the company shall extend all possible assistance and cooperation to the interim
administrator to manage the affairs of the company.