47. Stay of winding up proceedings on insolvency of foreman and transfer of insolvency proceedings.
- When during the pendency of the proceedings for the winding up of a chit, the foreman is adjudicated an insolvent or when the foreman is a company, the company has been ordered to be wound up by the court, the winding up proceedings under this Act shall cease and the distribution of the chit assets shall, subject to the provisions contained in Sections 34 and 42, be made by the insolvency court or the court winding up the company, as the case may be.
