Attachment under Prevention of Money Laundering Act is outside the scope of moratorium under Insolvency and Bankruptcy Code

Rajiv Chakraborty Resolution Professional of Eiel Vs Directorate of Enforcement (Delhi High Court)

Delhi High Court held that attachment under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) does not result in the effacement of rights in property, it would clearly stand and survive outside the scope of a moratorium that comes into effect in terms of section 14 of Insolvency and Bankruptcy Code, 2006.

Facts-

This writ petition raises the important question of the impact that a moratorium that comes into effect in terms of Section 14 of theInsolvency and Bankruptcy Code, 2006 would have on the powers of the Enforcement Directorate to enforce an attachment under the provisions of the Prevention of Money Laundering Act, 2002. The petition raises a challenge to orders of attachment which have been made by the ED in exercise of powers conferred by the PMLA.

Conclusion-

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