The Delhi High Court on Friday held that a property attached by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) can be released from attachment after approval of a resolution plan under the Insolvency and Bankruptcy Code (IBC), even if the attachment order predates the approval.
However, the protection applies only if the person taking over the corporate debtor is not a promoter or part of its previous management, is not a related party, and meets the other conditions under section 32A of IBC.
A division bench of Justice Navin Chawla and Justice Arun Bhardwaj set aside the PMLA Appellate Tribunal’s August 12, 2025 order dismissing Dash Exports Private Limited’s appeal against the attachment.
The bench…