TMI Blog2019 (10) TMI 1282X X X X Extracts X X X X X X X X Extracts X X X X ..... 'Directorate of Enforcement' are prohibited from attachment of any property of the 'Corporate Debtor' (Bhushan Power and Steel Limited) without prior approval of this Appellate Tribunal. The property already attached by them be released in favour of the 'Resolution Professional' immediately. Further, to ensure that the 'resolution plan' is not given effect before deciding the issue, we stay the impugned order dated 5th September, 2019, so far it relates to the payment of the creditors. Post the case 'for orders' on 25th October, 2019 on the top of the list. - Company Appeal (AT) (Insolvency) No. 957 of 2019 - - - Dated:- 14-10-2019 - S.J. Mukhopadhaya, Chairperson, A.I.S. Cheema, Judicial Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectorate of Enforcement' and submits that in the present case as the 'proceeds of crime' is involved, part/property of the 'Corporate Debtor' (Bhushan Power Steel Limited) has been attached by the Deputy Director of the Directorate of Enforcement, New Delhi by order dated 10th October, 2019. He prays for and is allowed time till 17th October, 2019 to file reply-affidavit. Same time is also granted to the 'Central Bureau of Investigation' to file reply affidavit. Rejoinder, if any, may be filed by the Appellant by 23rd October, 2019. 4. Mr. Sanjay Shorey, Director (Legal and Prosecution), Ministry of Corporate Affairs, Government of India submits that the 'Directorate of Enforcement' has no jurisdict ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dues of creditors to the extent possible under an open, transparent National Company Law Tribunal (NCLT) supervised process. (4) It is submitted that under the process envisaged under the Insolvency Bankruptcy Code, 2016( IBC ), once a Resolution Plan is approved by the Ld. Adjudicating Authority, it is binding on all stakeholders. Before approving the Resolution Plan, objections are heard by the Ld. Adjudicating Authority and once hearing on the Resolution Plan and objections is completed before the Ld. Adjudicating Authority and the Resolution Plan is approved, such approved Resolution Plan is binding on all stakeholders, including all government agencies. The provision of the Insolvency and Bankruptcy Code (Amendment) Act, 2019 by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Plan submitted by the interested Resolution Applicants are duly examined and validated by the Resolution Professional and the Committee of Creditors ( CoC ). Once the Resolution Plan is voted upon and approved by the CoC, it is submitted to the Ld. Adjudicating Authority for its approval. The Ld. Adjudicating Authority after hearing the objections, if any, and being satisfied that the Resolution Plan is in compliance with the provisions of the law, approves the Plan. The CIR Process is desired to ensure that undesirable persons do not take control of the Corporate Debtor by virtue of Section 29A of the IBC. The purpose and scheme of the CIR process is to hand over the company of the corporate debtor to a bona fide new resolution applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l enjoyment of any proceeds of crime after acquisition of the Corporate Debtor and its assets, as a Resolution Applicant would be a bona fide assets acquired through a legal process. Therefore, upon an acquisition under a CIR Process by a Resolution Applicant, the Corporate Debtor and its assets are not derived or obtained through proceeds of crime under the Prevention of Money Laundering Act, 2002 ( PMLA) and need not be subject to attachment by the ED after approval of Resolution Plan by the Adjudicating Authorities. 7. Taking into consideration the fact that the stand taken by the 'Directorate of Enforcement', is contrary to the stand taken by the Government of India, the order of attachment dated 10th October, 2019 passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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