Application of certain provisions in Companies Act 1967 and Part 5 to company under judicial management
117.  At any time when a company is in judicial management —
(a)section 210 of the Companies Act 1967 applies as if —
(i)the following subsection replaces subsections (1) and (2) of that section:
(1)  Where a compromise or an arrangement is proposed between a company under judicial management and its creditors or any class of those creditors, the Court may, on the application of the judicial manager, order a meeting of the creditors or class of creditors to be summoned in such manner as the Court directs.”; and
(ii)the following subsections replace subsections (3), (3AA) and (3AB) of that section:
(3)  A meeting held pursuant to an order under subsection (1) may be adjourned from time to time if the resolution for the adjournment is approved by a majority in number representing three‑fourths in value of the creditors or class of creditors (as the case may be) present and voting either in person or by proxy at the meeting.
(3AA)  If the conditions set out in subsection (3AB) are satisfied, a compromise or an arrangement is binding on the company, on the judicial manager, and on the creditors or class of creditors, as the case may be.
(3AB)  The conditions mentioned in subsection (3AA) are as follows:
(a)a majority in number, or such other number as the Court may order, of the creditors or class of creditors (as the case may be) present and voting either in person or by proxy at the meeting or the adjourned meeting agrees to the compromise or arrangement;
(b)the majority in number, or other number, of the creditors or class of creditors (as the case may be) mentioned in paragraph (a) represents three‑fourths in value of the creditors or class of creditors (as the case may be) present and voting either in person or by proxy at the meeting or the adjourned meeting;
(c)the compromise or arrangement is approved by order of the Court.”;
(b)section 68 applies as if —
(i)the following subsection replaces subsection (1) of that section:
(1)  Where the Court orders under section 210(1) of the Companies Act 1967 a meeting of the creditors, or a class of creditors, of a company under judicial management to be summoned, the judicial manager must state in every notice mentioned in section 211(1) of that Act summoning the meeting (called in this section the notice summoning the meeting) —
(a)the manner in which a creditor is to file a proof of debt with the company; and
(b)the period within which the proof is to be filed.”; and
(ii)the word “company” in subsections (3), (4), (9), (10) and (14)(a) of that section was replaced by the words “judicial manager”;
(c)section 69 applies as if the following subsection replaces subsection (1) of that section:
(1)  At the hearing of an application for the Court’s approval under section 210(4) of the Companies Act 1967 of a compromise or an arrangement between a company under judicial management and its creditors or any class of those creditors, the Court may order the judicial manager to hold another meeting of the creditors or class of creditors (called in this section the further meeting) for the purpose of putting the compromise or arrangement to a re‑vote.”;
(d)section 70 applies as if —
(i)the following subsection replaces subsection (2) of that section:
(2)  Despite section 210(3AA) and (3AB)(a) and (b) of the Companies Act 1967, the Court may, subject to this section and on the application of the judicial manager, or a creditor of the company who has obtained the leave of the Court to make an application under this subsection, approve the compromise or arrangement, and order that the compromise or arrangement be binding on the judicial manager, the company and all classes of creditors meant to be bound by the compromise or arrangement.”;
(ii)the following paragraph replaces paragraph (a) of subsection (4) of that section:
(a)no creditor in the dissenting class receives, under the terms of the compromise or arrangement, an amount that is lower than what the creditor is estimated by the Court to receive in the most likely scenario if the compromise or arrangement does not become binding on the judicial manager, the company and all classes of creditors meant to be bound by the compromise or arrangement; and”; and
(iii)the following subsection replaces subsection (5) of that section:
(5)  The Court may appoint any person of suitable knowledge, qualification or experience to assist the Court in estimating the amount that a creditor is expected to receive in the most likely scenario if the compromise or arrangement does not become binding on the judicial manager, the company and all classes of creditors meant to be bound by the compromise or arrangement.”; and
(e)section 71 applies as if —
(i)the following subsections replace subsections (1) and (2) of that section:
(1)  Despite section 210 of the Companies Act 1967 but subject to this section, where a compromise or an arrangement is proposed between a company under judicial management and its creditors or any class of those creditors, the Court may, on an application made by the judicial manager, make an order approving the compromise or arrangement, even though no meeting of the creditors or class of creditors has been ordered under section 210(1) of that Act or held.
(2)  Subject to subsection (10), if the compromise or arrangement is approved by order of the Court under subsection (1), the compromise or arrangement is binding on the judicial manager, the company and the creditors or class of creditors meant to be bound by the compromise or arrangement.”;
(ii)the words “the company has provided” in subsection (3)(a) of that section were replaced by the words “the judicial manager has provided”; and
(iii)the word “company” in subsections (3)(b) and (c), (4) and (7) of that section was replaced by the words “judicial manager”.