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2019 (2) TMI 961 - Tri - Money LaunderingAttachment orders challenged - PMLA, 2002 and the IB Code - attach the properties of the corporate debtor under the Prevention of Money-laundering Act, 2002 (PMLA) and restore the said properties to the liquidator for the purpose of liquidation under the IBC, 2016 to declare the right of the lenders/creditors on the attached properties of the corporate debtor to recover their dues prevails over the right of the respondent to attach the properties under the PMLA - whether an offence of money laundering has been prima facie made out or not and the properties that are mortgaged to the bank and other lenders, thereby creating security interest are "proceeds of crime", or not ? - whether properties attached are not proceeds of crime? Held that:- Issue here has to be decided only by the Adjudicating Authority or the Appellate Authority or the Special Court under the provision of the PMLA but not by this Adjudicating Authority exercising jurisdiction under the I and B Code. Two different enactments, i.e., the PMLA, 2002 and the I and B Code provide two different hierarchies of functionaries to decide the controversies that arise under the respective enactments. When such is the case one authority cannot interfere with the functions of the other authority under a different enactment. It is already said there is no repugnancy in procedure that is being followed for liquidation of the asset of the corporate debtor and the procedure to be followed in case of proceeds of crime, where an offence of money laundering has been committed. It is already said even if an offence of money laundering is committed, the claimant who are having security interest over the properties of the corporate debtor, can still ask for release of the properties, if they are able to establish they acted in good faith and they parted with valuable consideration in the form of sale consideration or debt and/or that the properties attached are not proceeds of crime. Therefore, the liquidator is at liberty to approach the Authorities under the PMLA and seek order to release the properties from the attachment on the ground that the properties attached are not proceeds of crime and the lenders are bona fide lenders and it is for the authorities under the PMLA Act to decide such issues based on the record of investigation and other material placed on record before then, uninfluenced by any of the findings or observations or opinion expressed in this order. In view of the above discussion the reliefs prayed in the petition cannot be granted without the liquidator taking recourse to remedies provided under the PMLA.
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