Section 385 — Effects of supervision order

(1) Where an order is made for a
winding up subject to supervision, the liquidator may, subject to any restriction
imposed by the Court, exercise all his powers, without the sanction or intervention
of the Court, in the same manner as if the company were being wound up altogether
voluntarily.

(2) Except as provided in sub -section (1), and save for the purposes of
section 327 an order made by the Court for a winding up subject to the supervision
of the Court shall for all purposes including the staying of suits and other
proceedings, be deemed to be an order of the Court for winding up the company by
the Court, and shall confer full authority on the Court to make call or to enforce
calls made by the liquidator, and to exercise all other powers which it might have
exercised if an order had been made for winding up the company altogether by the
Court.
(3) In the construction of the provisions whereby the Court is
empowered to direct any act or thing to be done to or in favour of the official
liquidator, the expression " official liquidator " shall be deemed to mean the
liquidator conducting the winding up subject to the supervision of the Court.
(4) Unless otherwise directed by the Court, an order for winding up
subject to supervision shall not in any way affect the duties, obligations and
liabilities of the liquidator as provided for in respect of voluntary winding up.