NCLT cannot determine controversy of attachment of property under Prohibition of Benami Property Transactions Act

P. Eswaramoorthy Vs DCIT (NCLAT Chennai)

NCLT cannot determine controversy of attachment of property under Prohibition of Benami Property Transactions Act

NCLAT Chennai held that National Company Law Tribunal (NCLT) is not proper Fora to determine the controversies revolving around the attachment of property under the Prohibition of Benami Property Transactions Act, 1988.

Facts- M/s. Senthil Paper & Boards Private Ltd. (Corporate Debtor) was admitted into Corporate Insolvency Resolution Process (CIRP). Thereafter, the Corporate Debtor was ordered for Liquidation vide order dated 14.02.2019 by the Adjudicating Authority. Accordingly, liquidator was appointed.

According to the Appellant / Petitioner / Liquidator, the `Notice’ to `Show Cause’ dated 01.11.2019, mentioned that during the course of such proceedings, various incriminating documents and loose sheets were found and seized, as per which during the period of demonetisation, Rs.400/- Crores in `Old High Denomination Notes’, were given to Senthil Group, Coimbatore, for the purchase of the Paper Mill in Coimbatore District, belonging to Smt. Sasikala, through her Intermediaries, etc.

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