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TMI Blog2019 (9) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... LAW APPELLATE TRIBUNAL NEW DELHI ] where it was held that the Prevention of Money Laundering Act, 2002 relates to different fields of penal action of proceeds of crime , it invokes simultaneously with the I B Code , having no overriding effect of one Act over the other including the I B Code . Appeal dismissed. - Mr S. J. Mukhopadhaya, Chairperson, Mr. A. I. S. Cheema, Member (Judicial) And Kanthi Narahari, Member (Technical) For The Appellant : Mr. Kanishk Khetan and Mr. Abhishek Pratap Singh, Advocates And Mr. Anil Goel, Liquidator (in person) For The Respondents : Mr. Nitesh Rana and Mr. A.R. Aditya Advocates JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. The Bank of Baroda initiated Corporate Insolvency Resolution Process against Rotomac G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r stated that the properties in question and mentioned in PAO that were attached fall within the definition of Proceeds of Crime in terms of Section 2(1)(u) of the PMLA and the same were provisionally attached vide PAO No. 08.2018 dated 28.05.2018. It is further stated that the property provisionally attached constitutes the value of such proceeds of crime. 6. The Liquidator filed an application for direction on Directorate of Enforcement for release of assets of the Corporate Debtor . It was contended by the respondent that in view of Section 9 of PMLA, in case an order of confiscation has been made under sub-section (6) of Section 8 of the PMLA in respect of any property of a person, all the rights and title in such property shall vest ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served and held as follows : 8. Section 14 is not applicable to the criminal proceeding or any penal action taken pursuant to the criminal proceeding or any act having essence of crime or crime proceeds. The object of the Prevention of Money Laundering Act, 2002 is to prevent the money laundering and to provide confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto. 9. Section 2(1) (u) of the Prevention of Money Laundering Act, 2002 defines proceeds of crime which reads as follows: 2. Definitions. ─ ( 1) In this Act, unless the context otherwise requires,─ xxx xxx xxx ( u) proceeds of crime means any property derived or obtained, directly or indirectly, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in, money-laundering and for matters connected therewith or incidental thereto. Thus, as the Prevention of Money Laundering Act, 2002 or provisions therein relates to proceeds of crime , we hold that Section 14 of the I B Code is not applicable to such proceeding. 13. In so far as penalty is concerned, offence of money laundering is punishable with rigorous imprisonment which is not less than three years and has nothing to do with the Corporate Debtor . It will be applicable to the individual which may include the Ex-Directors and Shareholders of the Corporate Debtor and they cannot be given protection from the Prevention of Money Laundering Act, 2002 and such individual cannot take any advantage of Section 14 of the I B Code . This apar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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