Moratorium under Section 14 of IBC does not affect the provisional attachment order passed under the Prohibition of Benami Property Transactions Act, 1988 and the attachment cannot be a subject matter of proceedings under Section 60(5) of IBC – Mr. P. Eswaramoorthy Liquidator of M/s. Senthil Papers and Boards Pvt. Ltd. Vs. The Deputy Commissioner of Income Tax (Benami Prohibition) – NCLAT Chennai
NCLAT held that the attachment made as per Section 24(3) of The Prohibition of Benami Property Transactions Act, 1988 cannot be a subject matter of proceedings under Section 60(5) of the IBC, 2016. One cannot fall back upon Section 60(5) of the IBC, 2016, for seeking remedy, concerning the matter, relating to the Prohibition of Benami Property Transactions Act, 1988. A Moratorium, under Section 14 of the IBC, 2016, does not affect the Provisional Attachment Order, passed under The Prohibition of Benami Property Transactions Act, 1988. The object of the Act 1988, is to Prohibit the Benami Transactions, and the right to redeem / recover, the Property, held Benami, for matters connected therewith or incidental thereto. A closure scrutiny of The Prohibition of Benami Property Transactions Act, 1988 and the I & B Code, 2016, clearly exhibit that they do operate in their own field and without any simmering doubt, this Tribunal, without any haziness, holds that an element of public interest, is involved in PBPT Act. To put it precisely, issues/disputes, pertaining to an Attachment, effected under The Prohibition of Benami Property Transactions Act, 1988, cannot be gone into, by an Adjudicating Authority (Tribunal), under the I & B Code, 2016. In short, the Appellant / Liquidator, cannot take umbrage, either under the ingredients of Section 32A, coupled with Section 60(5) of the I & B Code, 2016.
