Resurrecting the Dead: A Discussion around Schemes of Arrangement in Liquidation

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Schemes of arrangement for insolvent companies under Insolvency and Bankruptcy Code - Courts sanctioning schemes as an alternative to liquidation is not new, as such, the jurisprudence is rich in terms of principles/factors which the courts weigh while deciding on the same. In the context of IBC specifically, while the twin rules of fairness and equitability apply to schemes as well, is it necessary to follow the priority u/s 53? As one may also note, at present there is no explicit provision enabling moratorium on creditor action during the period of formulation, etc. of the schemes. In this article, I have tried dealing with the aspects.