The Delhi High Court recently quashed criminal proceedings against Bhushan Power & Steel Limited (BPSL) in relation to a complaint filed by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002 (PMLA) in view of Section 32A of the Insolvency and Bankruptcy Code (IBC).
Noting that BPSL underwent a successful resolution under the IBC, Justice Manmeet Pritam Singh Arora held that the company could not have been prosecuted for offences committed before the commencement of the Corporate Insolvency Resolution Process (CIRP).
“A plain reading of the above provision would reveal that there is no dispute over the legal position that once a resolution plan has been approved by the adjudicating authority under…
