Balancing resolution efficiency and criminal accountability, section 32A of the Insolvency and Bankruptcy Code, 2016 (IBC), shields the assets of corporate debtors from being attached by prosecuting authorities. Such protection depends on two conditions. These conditions are that on approval of a resolution plan by the National Company Law Tribunal (NCLT) there has been a change of management and the incoming management has neither abetted nor conspired in the alleged offence before the corporate insolvency resolution process (resolution process) started.
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Bharucha & Partners
This is a vital safeguard, particularly when agencies such as the Enforcement Directorate (ED) begin asset attachment proceedings…