Adjudicating Authority(NCLT) under IBC, 2016 is not the right fora to deal with revocation of attachment made by Enforcement Directorate under PMLA, Act, 2002 during CIRP – Mr. Palaniappan Liquidator of Nathella Sampath Jewelry Pvt. Ltd. Vs. The Joint Director Directorate of Enforcement – NCLT Chennai Bench

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In this case, the attachment order passed by the ED is well after the date of commencement of CIRP.
Hon’ble NCLT Chennai Bench holds that:
(i) The attachment made is as per the ingredients of the provisions of the PMLA Act, 2002 and that the same is to be dealt with under the relevant provisions of the said act only. The Code only pertains to the questions concerning CIRP & Liquidation Proceedings of the Corporate Debtor.
(ii) The concept of ‘Attachment’ made as per Section 5 (1) of the Prevention of Money Laundering Act, 2002 cannot be a subject matter of proceedings under Section 60(5) of the code, in a way making it clear that this Adjudicating Authority is not the right ‘FORA’ to deal with revocation of attachment made under the PMLA, Act, 2002.
(iii) Thereby, making it obvious that a remedy under PMLA act cannot be claimed before this Adjudicating Authority under the IBC, 2016 Code.

Adjudicating Authority(NCLT) under IBC, 2016 is not the right fora to deal with revocation of attachment made by Enforcement Directorate under PMLA, Act, 2002 during CIRP – Mr. Palaniappan Liquidator of Nathella Sampath Jewelry Pvt. Ltd. Vs. The Joint Director Directorate of Enforcement – NCLT Chennai Bench Read Post »