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IBC Update: NCLAT Holds- Provisional Attachments of Assets by ED Under PMLA Do Not Violate Moratorium under IBC July 23, 2025
Published in: Alerts
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In a significant judgment, the Hon’ble NCLAT has addressed key issues on the intersection of the Insolvency and Bankruptcy Code, 2016 and the Prevention of Money Laundering Act, 2002. In Anil Kohli (RP for Dunar Foods Ltd) vs Directorate of Enforcement, the Tribunal held that provisional attachment of assets under the PMLA does not violate the moratorium under Section 14 of the IBC, nor does the IBC override the PMLA in respect of tainted assets.
The ruling further clarifies that NCLT/NCLAT lack jurisdiction to interfere with attachments confirmed under PMLA and that such assets lie outside the resolution estate. This judgment may reshape resolution strategies where law enforcement actions intersect with insolvency proceedings and emphasizes the need for careful due diligence by resolution applicants.
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