Report No. 26
102. Powers of the High Court to control insolvency proceedings.-(1) A High Court exercising jurisdiction under this Act may, at any time after the presentation of an insolvency petition, stay any insolvency proceedings pending against the debtor in any court subject to the superintendence of that High Court, and may, at any time after the making of an order of adjudication annul an adjudication against the debtor made by any such court.
(2) Where an adjudication is annulled under sub-section (1), all sales and dispositions, of property and payments duly made and all acts done by the court whose order is annulled, or by the Official Assignee or other person acting under his authority, shall be valid, but the property vested in such Assignee shall vest in the Official Assignee appointed by the High Court for the territorial limits of its ordinary original civil jurisdiction, and the High Court may make such direction in regard to the custody of such property as it thinks fit.
(3) Notice of an order annulling an adjudication under sub-section (1) shall be published in the Official Gazette and in such other manner as may be prescribed.
[New] [Cf. 18A, P.T.A.]
103. Withdrawal of petition.-No petition, whether presented by a debtor or by a creditor, shall be withdrawn without the leave of the court, and no such leave shall be granted after an order of adjudication has been made.
[Section 14, P.A., modified.] [Cf. sections 13(8) and 15(2), P.T.A., modified.]