Committee of Creditors Vs Directorate of Enforcement & Others (Supreme Court of India)
Supreme Court directed control of properties of Corporate Debtor to be taken over by Resolution Applicant since the order of provisional attachment was passed by Directorate of Enforcement [ED] after Adjudicating Authority approved the Resolution Plan submitted by the successful Resolution Applicant.
Facts- The Civil Appeals have been filed by the Committee of Creditors against the Directorate of Enforcement and Others challenging the impugned order dated 10.10.2019 passed by the Directorate of Enforcement in exercise of the powers conferred under the Second proviso to sub-section(1) of Section 5 of the Prevention of Money Laundering Act, 2002, ordering provisional attachment of the properties of the Corporate Debtor (Bhushan Power and Steel Ltd.), being the proceeds of crime as defined under Section 2(1) (u) of the PMLA, and challenging the impugned judgment dated 14.10.2019 passed by the National Company Law Appellate Tribunal, New Delhi, staying the said order dated 10.10.2019 passed by the E . D.
Conclusion- Held that the Appellant-E.D. is directed to handover and the Respondent successful Resolution Applicant JSW is directed to take over the control of the properties of Corporate Debtor-Bhushan Power and Steel Ltd., provisionally attached vide the order dated 10.10.2019 passed by the E . D., immediately in view of Section 8(8) of the PMLA read with Rule 3A of the said Rules. It is clarified that this order is passed with the consensus of the learned counsels appearing for the concerned parties, considering the peculiar facts and circumstances of the cases, more particularly the fact that the order of provisional attachment was passed by the E . D. after the Adjudicating Authority i.e., NCLT had approved the Resolution Plan submitted by the successful Resolution Applicant.
