Section 59: Transaction to be, ipso facto, stayed or void

1) If a court makes an order, pursuant to sub-section (1) of Section 58, to initiate the bankruptcy proceedings in relation to the assets of a person, any of the orders, and if any of such acts have already commenced or are being carried out but not completed, such act shall, ipso facto, be stayed:

(a) To transfer in any manner to any person the title to, bail, pledge, mortgage or to lease or rent in any manner for a period exceeding one year, the assets of a person who is likely to become bankrupt,

(b) To attach, or execute the pledge, mortgage of, the assets of the person likely to become bankrupt pursuant to the judgment of a court,

(c) To repay debt or discharge liability of any creditor from the assets of the person likely to be bankrupt.

2) Any deed, contract, dealing, transaction or arrangement executed in contravention of the provision outlined in sub-section (1) shall, ipso facto, be deemed to have been void.