Amendments Needed In IBC To Provide NOC To Successful Resolution Applicants When Plan Over Attached Property Is Approved: Sr Adv Mukul Rohatgi

On Friday, 17th January 2025, a roundtable discussion titled "Understanding the Synergy Between PMLA and IBC" was held at India International Centre, New Delhi by the Insolvency Law Academy in collaboration with NM Law Chambers. He said that although the ED must lift its attachment over the properties of the corporate debtor once a resolution plan is approved by the Adjudicating Authority, as the word “shall” is used under the section, still the resolution applicant is compelled to file a discharge application before the Adjudicating Authority constituted under the PMLA for this purpose. Sumant Batra interjected by saying that there is already a judgment on this issue, namely Shiv Charan, delivered by the Bombay High Court, where the Court held that the Adjudicating Authority constituted under the IBC is empowered to decide whether the ED must be directed to lift its attachment over the properties while approving the resolution plan under Section 31 of the IBC. Sumant Batra posed another question as to whether the ED is justified in passing an order of attachment of the properties of the corporate debtor when moratorium under section 14 of the IBC is in operation. Mr. Batra referred to the Delhi High Court's judgment in Rajiv Chakraborty, where the Court held that the ED can pass an order of attachment of the properties of the corporate debtor when the moratorium under Section 14 of the IBC is in operation but not when Section 32A comes into operation.