40. Insolvency or liquidation a bar to winding up proceedings.- Notwithstanding anything contained in sections 38 and 39, no petition for the winding up of a chit shall be entertained by a court if proceedings under the law relating to insolvency for the time being in force are pending against the foreman for adjudicating him an insolvent or when the foreman is a company, if proceedings for winding up the company are pending against such company in a court. |
