Post by PJ Law Offices

𝗖𝗮𝗻 𝘁𝗵𝗲 𝗜𝗕𝗖 𝗺𝗼𝗿𝗮𝘁𝗼𝗿𝗶𝘂𝗺 𝘀𝘁𝗼𝗽 𝘁𝗵𝗲 𝗘𝗻𝗳𝗼𝗿𝗰𝗲𝗺𝗲𝗻𝘁 𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿𝗮𝘁𝗲 𝗳𝗿𝗼𝗺 𝗮𝘁𝘁𝗮𝗰𝗵𝗶𝗻𝗴 𝗮𝘀𝘀𝗲𝘁𝘀? In a significant ruling, the NCLAT has clarified the relationship between the Insolvency and Bankruptcy Code, 2016 and the Prevention of Money Laundering Act, 2002, reaffirming that the IBC cannot be used to override or impede proceedings under the PMLA. The Tribunal held that the moratorium protects only legitimate assets of the corporate debtor, not assets alleged to be proceeds of crime. It further held that the IBC and the PMLA operate in distinct legal spheres, that insolvency tribunals cannot review or interfere with ED actions under the PMLA, and that challenges to such actions must be pursued through the statutory mechanism under the PMLA. Our latest article examines the ruling and its implications for insolvency proceedings, enforcement actions, and jurisdiction under the IBC and the PMLA. Read our latest article at https://lnkd.in/gyTVQk6q PJ Law Offices Anha Shihanouk #NCLAT #IBC #PMLA #Insolvency #EnforcementDirectorate #CorporateLaw #InsolvencyLaw