In Value Wise Consultancy Private Limited v Deputy Director, Enforcement Directorate, the National Company Law Appellate Tribunal (NCLAT) held that the National Company Law Tribunal (NCLT) has no jurisdiction over the Enforcement Directorate (ED) withdrawing funds from a corporate debtor’s account.
The case began with police complaints against the corporate debtor alleging loan diversion, ED notices restraining creditors from transacting with or releasing money to the corporate debtor, and provisional attachment of the corporate debtor’s assets in June 2017.
Insolvency proceedings commenced in September 2017. Despite the moratorium, the ED withdrew INR22.9 million (USD237,000) from the corporate debtor’s account in…