North India Statesman
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The National Company Law Appellate Tribunal (NCLAT) has given an important decision, which makes it clear that the provision of the Insolvency and Bankruptcy Code, 2016 (IBC) cannot take the Prevention of Money Laundering Act, 2002 (PMLA) to be overforest or its location. This decision means that if a company or individual is facing allegations of money laundering, the resolution plan approved under the IBC cannot save them from being responsible for crimes related to money laundering.
The decision came during the hearing of the case in which a solution professional challenged an order of NCLT (National Company Law Tribunal). The tribunal assuming that Section 4 of the IBC, which prioritizes some special provisions on other laws, will not apply to serious crimes like money laundering, PMLA. Underlined the importance of. In particular, NCLAT clarified that while disposing of liabilities of a company through IBC, the obligations related to crimes imposed under the Money Laundering Act could not be abolished or waived.
The NCLAT in its argument also cited the first decisions of the Supreme Court, who in dealing with serious financial offenses like money laundering. The predominance and constitutionalism of it is confirmed. This decision will have far -reaching effects on how to deal with cases of bankruptcy in the corporate world, especially in cases where allegations of money laundering are also included. This ensures that investigation and proceedings under the Prevention of Money Laundering Act can continue uninterrupted, even if the solution process under the IBC is going on against that institution.
