As per our reports, in a judgement, the Adjudicating Authority has allowed the liquidator to sell the assets of a company which were attached by the investigative agencies. As per the order of the National Company Law Tribunal, Kolkata Bench, passed on 22nd July, 2020, the liquidator is permitted to sell the assets of the Corporate Debtor that were attached by the Enforcement Directorate (E.D.), subject to the right of the buyer to apply for detachment of the property.
Attachment & confiscation of properties of a Corporate Debtor under Corporate Insolvency Resolution Process (CIRP) or liquidation is void or of no effect under Section 32-A of the Insolvency & Bankruptcy Code, 2016. Section 32-A provides that Corporate Debtor shall not be prosecuted for an offence committed prior to the commencement of CIRP, once Resolution Plan has been approved by the Adjudicating Authority.
This judgement can help to speed-up the insolvency process in similar cases where investigative agencies have attached assets of a corporate debtor. This order will be of a greater value in various assets owned by companies attached by investigating agencies. This order will be a landmark in the history of jurisprudence of insolvency law in India. As per NCLT, Kolkata Bench, a liquidator can proceed with the sale of assets, even if it is under attachment by the respondent, to continue with the liquidation process of a company in a timely manner under the provisions of the Insolvency & Bankruptcy Code.
It can be concluded that this ruling could help to speed-up the insolvency process where the investigative authorities have attached the assets of a corporate debtor. This order will be a landmark in the history of Indian insolvency law.
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