(1)Where during the pendency of the proceedings for winding up a chitty, the foreman or all the foremen, where there are more than one foreman, is or are adjudicated insolvent or insolvents or, where the foreman is a company, the company has been ordered to be wound up by the court, the winding up proceedings under this part shall cease and the distribution of the chitty assets shall, subject to the provisions contained in sections 39 and 46, be insolvency winding up the company as the case may be.
