Section 262 - Omitted

Revival and rehabilitation of sick companies: schemes require creditor approval, Tribunal sanction, and vesting of assets.

Section 262 prescribed that the company administrator must place a rehabilitation scheme before separate meetings of secured and unsecured creditors for approval with specified voting thresholds, and, if approved, submit it to the Tribunal. The Tribunal examined, published for objections, could modify, and was to sanction a validly approved scheme, whose sanction effected transfer and vesting of property and liabilities as provided; the Tribunal could review or require a fresh scheme and the sanctioned scheme had conclusive evidentiary effect and had to be filed with the Registrar within thirty days.