The seizure or attachment of accounts of Corporate Debtor cannot stand as obstruction when the Corporate Debtor is at the stage of liquidation under IBC – National Spot Exchange Ltd. Vs. M/s. Namdhari Food International Pvt. Ltd. Through its Liquidator – NCLAT New Delhi
NCLAT held that in the present matter, the argument that unless liquidation takes place, protection of Section 32A cannot be invoked is not well founded. Unless property becomes available and is subjected to the Liquidation Process under Chapter III Part II of the IBC, the applicability or inapplicability of Section 32A cannot be claimed. As per Chapter III, the Liquidator is duty bound under Section 35 to take into custody or control all the assets, property, effects and actionable claims of the Corporate Debtor. If in liquidation, there is a change of control of Corporate Debtor to a person who was not a promoter or in management or in control of the Corporate Debtor or a related party of such person, the person will be protected. Thus, beforehand it cannot be claimed that protection of Section 32A is not available. Any attachment to such extent under the State Act will have to give way to IBC, and obstruction has to be removed.
