The Orissa High Court quashed criminal proceedings initiated against Ferro Alloys Corporations Ltd. for environmental violations committed prior to the commencement of the Corporate Insolvency Resolution Process (CIRP)and held that Section 32A of the IBC grants statutory immunity to the corporate debtor following approval of a resolution plan and a complete change in management.
The complaint alleged that the company had extracted manganese ore beyond the permissible limits between 2002 and 2009 without obtaining the requisite environmental clearance and consent to operate thereby violating the provisions of the Environment (Protection) Act, 1986. Cognizance of the alleged offences had been taken in 2014.
The…