Section 16 in The M.P. Adjustment and Liquidation of Industrial Workers' Debt Act, 1936
16. Effect of order of adjudication.
(1)On the making of an order of adjudication, the whole of the assets of the petitioner shall vest in the Court or in a receiver and thereafter no creditor to whom the petitioner is indebted in respect of any debt adjustable under this Act shall have any remedy against the assets of such petitioner in respect of his debt or commence any suit or other legal proceeding except with the leave of the Court and on such terms as it may impose.(2)All assets which are acquired by or devolve on the petitioner after the date of an order of adjudication and before his discharge shall forthwith vest in the Court or receiver and the provisions of sub-section (1) shall apply in respect thereof.(3)An order of adjudication shall relate back to, and take effect from, the date of the presentation of a liquidation petition on which it is made.
