The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member) and Mr. Indevar Pandey (Technical Member) has held that if property is alleged to be proceeds of crime and is under adjudication by a competent authority under a penal statutes, it cannot be considered part of the freely available resolution estate under the Insolvency and Bankruptcy Code, 2016 (IBC), therefore the Enforcement Directorate cannot be directed to release the assets of the corporate debtor attached by it during the Corporate Insolvency Resolution Process (CIRP) under the Prevention of the Money Laundering Act, 2002 (PMLA).
Brief Facts:
The present appeal…