Jurisdiction under PMLA vs IBC - power or authority to proceed ...

Section 32A IBC Prioritizes Bankruptcy Code Over PMLA in Liquidation, Limiting Money Laundering Prosecutions on Corporate Debtors.

December 16, 2021

Case Laws     Money Laundering     HC

Jurisdiction under PMLA vs IBC - power or authority to proceed against the properties of a corporate debtor once a liquidation measure has come to be approved in accordance with the provisions made in the Insolvency and Bankruptcy Code, 2016 - The issue of reconciliation between the IBC and the PMLA, in so far as the present cause is concerned, needs to be answered solely on the anvil of Section 32A. Once the Legislature has chosen to step in and introduce a specific provision for cessation of liabilities and prosecution, it is that alone which must govern, resolve and determine the extent to which powers under the PMLA can be permitted in law to be exercised while a resolution or liquidation process is ongoing. - HC

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