TMI Blog2019 (5) TMI 1468X X X X Extracts X X X X X X X X Extracts X X X X ..... rs connected therewith or incidental thereto. The Prevention of Money-Laundering Act, 2002 relates to proceeds of crime and the offence relates to money-laundering resulting confiscation of property derived from, or involved 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 , Section 14 of the I B Code is not applicable to such proceeding. Imposition of penalty - HELD THAT:- The 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating Authority (National Company Law Tribunal), Kolkata Bench, Kolkata, for releasing the attachment of certain assets of the Corporate Debtor by Deputy Director of Enforcement. 2. On-going through the order of attachment, the Adjudicating Authority observed that the attachment order was issued on 10th July, 2017 prior to the order of declaration of the Moratorium in the case in hand. Therefore, an order releasing the order of attachment by the Directorate of Enforcement is not maintainable. The aforesaid order dated 12th July, 2018 is under challenge in this appeal. 3. Learned counsel appearing on behalf of the Appellant- Resolution Professional submitted that Section 14 of the Insolvency and Bankruptcy Cod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. (2) The supply of essential goods or services to the corporate debtor as may be specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (vii) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 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- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that where the proceeds of crime involved in money-laundering relates to any offence specified under paragraph 2 of Part A of the Schedule, the provisions of this section shall have effect as if for the words which may extend to seven years , the words which may extend to ten years had been substituted. 12. From the aforesaid provisions, it is clear that the Prevention of Money-Laundering Act, 2002 relates to proceeds of crime and the offence relates to money-laundering resulting confiscation of property derived from, or involved 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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