Kolkata: Observing that the Insolvency and Bankruptcy Code (IBC) prohibits initiation of suits or continuation of pending suits or proceedings against the corporate debtor following the initiation of Corporate Insolvency Resolution Process (CIRP), Calcutta High Court quashed notices issued by the Enforcement Directorate (ED) under the Foreign Exchange Management Act (FEMA) against a Kolkata-based jewellery company under liquidation process.
The bench of Justice Jay Sengupta was moved by the petitioner who was the liquidator appointed by the National Company Law Tribunal (NCLT) to complete the liquidation process of the company as per the provisions of the IBC. He prayed for quashing two notices issued under FEMA provisions for seizure of…
