The recent Insolvency and Bankruptcy Board of India (IBBI) circular allows restitution of corporate debtor’s assets attached by the Directorate of Enforcement (ED) through an application. Kartik Bhatnagar, a lawyer and insolvency professional, has more than a decade of experience and took part in the Jet Airways insolvency case in the Supreme Court. He explains this recent development.
Q1. What is the significance of the circular for the corporate insolvency resolution process (CIRP)?
The Insolvency and Bankruptcy Code, 2016 (IBC), is prospective and remedial seeking to maximise corporate debtor’s assets’ value for stakeholders. Whereas, the Prevention of Money-Laundering Act, 2002 (PMLA), is…