Section 11

by substituting for subsection (1) the following subsection:

“(1)  Where no order has been made or resolution has been passed for the winding up of a company and a compromise or arrangement has been proposed between the company and its creditors or any class of those creditors, the Court may, in addition to any of its powers, on an application in a summary way by the company or any member or creditor of the company, grant a restraining order for a period of not more than three months from the date on which the restraining order is granted.”;

by inserting after subsection (1) the following subsection:

“(1a)  Upon the filing of an application for a restraining order under subsection (1) and until the application is decided by the Court or until the lapse of two months from the date of filing of the application, whichever is earlier—

no order may be made, and no resolution may be passed, for the winding up of the company;

no receiver or receiver and manager may be appointed over any undertaking or property of the company;

no proceedings may be commenced or continued against the company other than the proceedings under section 366, 368c, 368d, 369a or 370

except with the leave of the Court and subject to any terms as the Court may impose;

no execution, distress or other legal process may be commenced, continued or levied against any property of the company except with the leave of the Court and subject to any terms as the Court may impose;

14

no steps may be taken to enforce any security over any property of the company, or to repossess any goods held by the company under any chattels leasing agreement, hire purchase agreement or retention of title agreement, except with the leave of the Court and subject to any terms as the Court may impose; and

no right of re‑entry or forfeiture under any lease in respect of any premises occupied by the company may be enforced except with the leave of the Court and subject to any terms as the Court may impose.”;

in subsection (2), by substituting for the words

“The Court may grant a restraining order under subsection (1) to a company for a period of not more than three months and the Court may on the application of the company, extend this period for not more than nine months if” the words “Subject to any terms that the

Court may impose, the Court may grant an extension of not more than nine months to the period of restraining order referred to in subsection (1) to a company if”; and

by inserting after subsection (3) the following subsections:

“(3a)  A restraining order granted under subsection (1)

and an extension of the period of restraining order granted under subsection (2) may include one or more of the following orders:

no order may be made, and no resolution may be passed, for the winding up of the company;

no receiver or receiver and manager may be appointed over any undertaking or property of the company;

no proceedings may be commenced or continued against the company other than the proceedings under this section, section 366, 368c, 368d, 369a or 370 except with the leave of the Court and subject to any terms as the Court may impose;

Companies (Amendment)

no execution, distress or other legal process may be commenced, continued or levied against any property of the company except with the leave of the Court and subject to any terms as the Court may impose;

no steps may be taken to enforce any security over any property of the company, or to repossess any goods held by the company under any chattels leasing agreement, hire purchase agreement or retention of title agreement, except with the leave of the Court and subject to any terms as the Court may impose;

no right of re‑entry or forfeiture under any lease in respect of any premises occupied by the company may be enforced except with the leave of the Court and subject to any terms as the Court may impose.

No restraining order under this section shall be granted to a company if an order had been granted to the company under subsection (1), section 368b, 368d or 369c, or its related company under section 368a, as the case may be, within the preceding period of twelve months.”.

New sections 368a, 368b, 368c and 368d