In a recent ruling on the interplay between the Insolvency and Bankruptcy Code, 2016 (IBC) and the Prohibition of Benami Property Transactions Act, 1988, (PBPT) the Madras High Court has held that Section 32A of the IBC bars any action against the corporate debtor’s property for offences committed prior to the commencement of the Corporate Insolvency Resolution Process (CIRP).
The Court therefore restrained the Income Tax Department from enforcing the benami attachment over “Milanem Mall”, a commercial property standing in the name of the petitioner, now under new management pursuant to an NCLT‑approved Resolution Plan.
The petitioner Milan Textile Enterprises Pvt. Ltd., challenged the provisional attachment…