The panel ruled that when the Corporate Debtor’s account was frozen in accordance with the Adjudicating Authority’s instructions under the PMLA, it lacked the authority to order the ED to defreeze it
The Tribunal ruled that only the authorities specified under the PMLA have the authority to handle cases pertaining to account freezing and attachment under the PMLA.
The National Company Law Tribunal (NCLT), New Delhi has held that the NCLT, the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016 (IBC/the Code), lacks the authority to order the Directorate of Enforcement (ED) to unfreeze a corporate debtor’s account after it has been frozen in accordance with the Adjudicating Authority’s directives under the Prevention…
