Bankruptcy order effect: estate vests in trustee and creditors' remedies are stayed; secured rights remain exercisable. On a bankruptcy order, the bankrupt's estate vests in the bankruptcy trustee for distribution among creditors; creditors with bankruptcy debts may not act against the bankrupt's property or commence proceedings except with leave of the Adjudicating Authority. Secured creditors may realise or deal with their security as if no order were made, subject to section 123, but lose entitlement to post commencement interest if they do not realise security within thirty days. A firm's bankruptcy order operates as if made against each partner, and certain transactions may be excluded by Central Government notification.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Bankruptcy order effect: estate vests in trustee and creditors' remedies are stayed; secured rights remain exercisable.
On a bankruptcy order, the bankrupt's estate vests in the bankruptcy trustee for distribution among creditors; creditors with bankruptcy debts may not act against the bankrupt's property or commence proceedings except with leave of the Adjudicating Authority. Secured creditors may realise or deal with their security as if no order were made, subject to section 123, but lose entitlement to post commencement interest if they do not realise security within thirty days. A firm's bankruptcy order operates as if made against each partner, and certain transactions may be excluded by Central Government notification.
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