Ipso facto suspension

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(1) Notwithstanding anything contained in the laws in force, where the Court issues order to institute insolvency proceedings in relation of any company pursuant to Sub-section (2) of Section 10, any of the following acts or actions shall not be done or taken; and any acts or actions being done or taken but not completed shall ipso facto be suspended:
(a) Transferring, selling and disposing of the shares of the company or altering the status of any shareholder;
(b) Transferring, selling and disposing of any assets of the company or mortgaging or pledging the same as collateral in any manner;
(c) Foreclosing any assets of the company or realizing any security according to any judgment or order;
(d) Preempting any property leased to the company by the lessor or instituting any legal action in relation thereto;
(e) Paying any debt whose payment was outstanding or which had become payable at the time when the court made order to institute insolvency proceedings pursuant to Sub-section (2) of Section 10 or pledging of a security in consideration thereof; and
(f) Transferring or withdrawing moneys in the fund of the company.
(2) Notwithstanding anything contained in Sub-section (1), where any person makes an application to the Court claiming that the automatic suspension of any transaction pursuant to the said Sub-section will cause a loss to that person, the Court may, if it holds that the statements of the applicant are reasonable and that this does not prejudice the interests of the company or its creditors, issue an order to do any transaction.

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