2024 (8) TMI 23 - HC - Insolvency and Bankruptcy

Attachment of property, pending the liquidation proceedings - seeking interim order permitting the sale to take place as part of the liquidation process, after lifting the attachment order issued by the Enforcement Directorate - HELD THAT - Reliance is placed on the judgments of the High Court of New Delhi in Rajiv Chakraborty Resolution Professional of EIEL v. Directorate of Enforcement 2022 (11) TMI 600 - DELHI HIGH COURT and that of the High Court of Gujarat in AM MINING INDIA PRIVATE LIMITED VERSUS UNION OF INDIA 2023 (8) TMI 1489 - GUJARAT HIGH COURT to submit that the where the insolvency proceedings had been started even before the attachment is ordered by the Enforcement Directorate, the proceedings before the NCLT will have to prevail over the proceedings of the Enforcement Directorate. The Court had interpreted the non obstante clause in the two enactments. The interest of the parties can be safe guarded pending this litigation by permitting the sale to go on and ensuring that the proceeds of the sale shall be liable for attachment by the Enforcement Directorate. In the above circumstances, there will be an interim direction to lift the attachment effected by the Enforcement Directorate on the properties which are subject matter of the liquidation to facilitate the Liquidator to sell the properties.

Summary

The petitioner, Liquidator of M/s. Atlas Gold Township (India) Private Limited, seeks an interim order to lift the attachment by the Enforcement Directorate on the property to facilitate the sale as part of the liquidation process. The High Court grants the interim direction, ensuring that the proceeds of the sale will be liable for attachment by the Enforcement Directorate. The order is subject to the condition that the proceeds are retained in an account and the Enforcement Directorate is kept informed of the sale details. This decision is supported by previous judgments and an interim order of the Supreme Court.