Case Law Details
Union Bank Of India E Andhra Bank Vs Union Of India & Ors. (Delhi High Court)
Considering the fact that the resolution plan has already been approved in this matter, and that the ED’s order of provisional attachment of the properties of Respondent No. 4 has been passed after the approval of the resolution plan by the NCLT, the said provisional attachment would prima facie be contrary to Section 32A of the IBC.
Accordingly, till the next date in this matter, there shall be a stay of the proceedings in ECIR No. ECIR/HYZO/02/20 18 before the Adjudicating Authority arising out of the provisional attachment order dated 1 5th October 2020, passed by the ED, subject to the condition that the Petitioner Bank shall place on record any details of the steps taken to monetize the assets and the recovery made, if any.
The ED shall file a detailed counter affidavit. Further, since the issue in this petition is related to the attachment of assets post the resolution plan being approved, the Ministry of Finance, Union of India shall also place on record its stand on this issue.
Let copy of the resolution plan be placed on record by the Petitioner Counter affidavit be filed within four weeks. Rejoinder thereto, if any, be filed within four weeks thereafter. The ED is permitted to take the above objections, with respect to the jurisdiction of this court, in its counter affidavit. The same shall be heard as a preliminary objection.
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