128. (1) On the passing of the bankruptcy order under section 126,-
(a) the estate of the bankrupt shall vest in the bankruptcy trustee as
provided in section 154;
(b) the estate of the bankrupt shall be divided among his creditors;
(c) subject to provisions of sub-section (2), a creditor of the bankrupt
indebted in respect of any debt claimed as a bankruptcy debt shall not-
(i) initiate any action against the property of the bankrupt in respect of
such debt; or
(ii) commence any suit or other legal proceedings except with the leave of
the Adjudicating Authority and on such terms as the Adjudicating Authority
may impose.
(2) Subject to the provisions of section 123, the bankruptcy order shall not
affect the right of any secured creditor to realise or otherwise deal with
his security interest in the same manner as he would have been entitled if
the bankruptcy order had not been passed:
Provided that no secured creditor shall be entitled to any interest in
respect of his debt after the bankruptcy commencement date if he does not
take any action to realise his security within thirty days from the said
date.
(3) Where a bankruptcy order under section 126 has been passed against a
firm, the order shall operate as if it were a bankruptcy order made against
each of the individuals who, on the date of the order, is a partner in the
firm.
(4) The provisions of sub-section (1) shall not apply to such transactions
as may be notified by the Central Government in consultation with any
financial sector regulator.