Question before Appellate Tribunal is whether after approval of a Resolution Plan under Section 31 of the Code, is it open to the Directorate of Enforcement to attach the assets of the Corporate Debtor on the alleged ground of money laundering by erstwhile Promoters. NCLAT held that the Directorate of Enforcement has not been empowered under the Code to decide the question. Even if the stand taken by the Directorate of Enforcement is accepted that JSW Steel Limited is a related party of M./s. Bhushan Power & Steel Ltd.- (Corporate Debtor), the Directorate of Enforcement cannot decide whether JSW Steel Limited is ineligible under Section 29A or Section 32A (1) (a) which can be determined by the Committee of Creditors/ Adjudicating Authority. Section 29A was inserted by the Insolvency and Bankruptcy Code (Amendment) Act, 2018 dated 18th January, 2018 with retrospective effect i.e. from 23rd November, 2017. The main object that persons, who are ineligible in terms of clauses (a) to (j) are excluded from acquiring the company. If a person becomes ineligible because of his own act, such person is not eligible to submit a Resolution Plan individually or jointly or in concert with. However, on the direction of the Central Government, if a person is asked to join hands with others for compliance of such direction a person cannot be held to be ineligible on the ground of related party.
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