Hi.
To prevent spikes or signal overdriving, when is one circuit preferred to the other? What rules are to be followed in deciding which to use ? What does one do the other does not ?

 

One returns overvoltage "spikes" to the signal source and the other returns to the power rails.
If your signal source is delicate, think CMOS, then the scheme using power rails would be better.

 

The first case will prevent Vout from exceeding +/- one diode forward voltage drop.

The second will prevent the inputs of the opamp from exceeding one diode forward voltage drop above and below the power supply rails.