The NCLAT was hearing appeals filed by the liquidator of a company (corporate debtor) against a July 19, 2022 order of the NCLT Ahmedabad. The NCLT had dismissed the liquidator’s applications seeking relief against actions taken by the Enforcement Directorate (ED).
The case arose from ED proceedings against the corporate debtor over allegations of bank fraud and diversion of loan funds. The ED had issued notices under Section 50 of the PMLA to various debtors and customers of the corporate debtor, directing them not to transact with or release money to the company. It also attached movable and immovable assets of the corporate debtor and related persons.
The company was admitted into the corporate insolvency resolution process on…