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TMI BlogLiability for prior offences etc. [ section 32A]X X X X Extracts X X X X X X X X Extracts X X X X ..... [ Section 32A(1) ] Notwithstanding anything to the contrary contained in this Code or any other law for the time being in force, the liability of a corporate debtor for an offence committed prior to the commencement of the corporate insolvency resolution process shall cease, and the corporate debtor shall not be prosecuted for such an offence from the date the resolution plan has been approved by the Adjudicating Authority under section 31 , if the resolution plan results in the change in the management or control of the corporate debtor to a person who was not- (a) a promoter or in the management or control of the corporate debtor or a related party of such a person; or (b) a person with regard to whom the relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted prior to the commencement of the corporate insolvency resolution process of the corporate debtor, where such property is covered under a resolution plan approved by the Adjudicating Authority under section 31 , which results in the change in control of the corporate debtor to a person, or sale of liquidation assets under the provisions of Chapter III of Part II of this Code to a person, who was not- (i) a promoter or in the management or control of the corporate debtor or a related party of such a person; or ( ii ) a person with regard to whom the relevant investigating authority has, on the basis of material in its possession reason to believe that he had abetted or conspired for the commission of the offence, and has su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The extinguishment of the criminal liability of the CD is apparently important to the new management to make a clean break with the past and start on a clean slate. The provision is carefully thought out. It is not as if the wrongdoers are allowed to get away. They remain liable. Tata Steel BSL Ltd. Anr. Vs. Union of India Anr. - HC, New Delhi Dated 16.03.2020 CD would not be liable for any offence committed prior to commencement of the CIRP. JSW Steel Ltd. Vs. Mahender Kumar Khandelwal Ors. - NCLAT order dt. 17.02.2020 The ED/other investigating agencies do not have the powers to attach assets of a CD, once a resolution plan stands approved and the criminal investigations against the CD ..... X X X X Extracts X X X X X X X X Extracts X X X X
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