42. Insolvency or liquidation a bar to winding up proceedings.
- Notwithstanding anything contained in sections 40 and 41, no petition for the winding up of a chit shall be entertained by the prescribed authority or a court under section 40 if proceedings under the Provincial Insolvency Act, 1920, are pending against the foreman for adjudicating him an insolvent or where the foreman is a company, if proceedings for winding up the company are pending against such company under the Companies Act, 1956.
