Jeweler Nirav Modi had filed for bankruptcy in a US court following which the court has passed an interim order preventing creditors to collect money back from the bankrupt jeweler.

The chapter 11 voluntary petition was filed by Firestar Diamond Inc. in New York Southern Bankruptcy Court on Monday. The stay order directs the creditors to not collect the debt back from the brand. Firestar Diamond Inc. has Nirav Modi as its major stakeholder.

“This means that creditors generally may not take action to collect debts from the debtor or the debtor's property,” read the court order.

“Creditors who violate the stay can be required to pay actual and punitive damages and attorney’s fees," the court warned in the order, copies of which have been transmitted to multiple stakeholders, including a few dozen creditors of Firestar Diamond Inc,” cited the court order.

This comes a month after Nirav Modi was charged with money laundering in the multi-crore Punjab National Bank fraud investigated by Central Bureau of Investigation and Enforcement Directorate. Both the agencies have so far seized several properties of  Nirav Modi after the fraud came to light.

Firestar Diamond submitted a bunch of documents enlisting their creditors and other relevant details about them. A copy of the court order has been also sent to the enlisted creditors.