The Delhi High Court bench of Justice Manmeet Pritam Singh Arora has held that in accordance with Section 32A(1) of the Insolvency and Bankruptcy Code, 2016 (IBC), a Corporate Debtor that has successfully undergone a resolution process under Section 31 of the IBC shall not be prosecuted for offences committed prior to the commencement of the CIRP.
Brief Facts
On 26.07.2017 the National Company Law Tribunal (NCLT) initiated corporate insolvency resolution process (CIRP) against Bhushan Power and Steel Limited (BPSL/ Corporate Debtor/ Petitioner Company) under section 7 of IBC. JSW Steel Ltd. emerged as the successful resolution applicant.
Meanwhile, on 05.04.2019, the CBI registered an FIR against the BPSL, its…
