New Delhi, July 3 (IANS) The National Company Law Tribunal (NCLT) has upheld the primacy of the Enforcement Directorate in dealing with proceeds of crime linked to money laundering over claims by creditors against a ‘bankrupt’ company under the insolvency code, an official said on Thursday.
The verdict of the Tribunal’s bench comprising Bachu Venkat Balram Das and Sanjeev Ranjan, delivered in a matter related to Shakti Bhog Snacks Limited, said: “The Insolvency and Bankruptcy Code (IBC) cannot be used as a mechanism to frustrate or sidestep the legitimate process of law under the Prevention of Money Laundering Act, 2002.”
The NCLT verdict, delivered on June 30, said: “Dissolution under Section 54 of the IBC results in the…