16(1)Subject to the provisions of sections 17, 17.1 and 18, while any firm or person is in default in registering any certificate required to be registered by this Act, the rights of the defaulter under or arising out of any contract in relation to the business in respect of which the certificate was required to be registered are not enforceable by action or other legal proceedings either in the firm or business name or otherwise.

16(2)Subsection (1) does not apply to a trustee in bankruptcy, a bailiff or officer of the court.