The Insolvency and Bankruptcy Code, 2016 (IBC) and the Prevention of Money Laundering Act, 2002 (PMLA) are landmark legislation, enacted with separate objectives. The IBC aims to consolidate and resolve insolvency processes within a specific time frame to maximise asset value. The PMLA is concerned with identifying and attaching the proceeds of crime, ensuring criminal accountability and deterring money laundering. The meeting of these statutes has led to the recurring legal question as to which law prevails when insolvency proceedings under the IBC are underway, and attachment proceedings are initiated by the Enforcement Directorate (ED) under the PMLA.
Associate
SNG & Partners
The IBC was introduced to…