JUDGMENT :

Sudhansu Jyoti Mukhopadhaya, J.

The Directorate of Enforcement of Central Government, New Delhi, attached some of the properties of ‘Varrsana Ispat Limited’- (‘Corporate Debtor’). The ‘Resolution Professional’ filed application before the Adjudicating 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 Code, 2016 (“I&B Code” for short) has an overriding effect on the provisions of the ‘Prevention of Money Laundering Act, 2002’. Reference was made to Section 238 of the ‘I&B Code’. It was submitted that during the period of ‘Moratorium’ the creditors and all authorities causing any disruption in the ‘Corporate Insolvency Resolution Process’ cannot be allowed to do so.

4. Further, according to counsel for the Appellant, the provisional order of attachment cannot be confirmed by the Directorate of Enforcement during the period of ‘Moratorium’.

5. On the other hand, according to learned counsel appearing on behalf of the Directorate of Enforcement, in view of the provisions of ‘Prevention of Money Laundering Act, 2002’ including Section 2(1)(u) and Sections 3 & 4, the action can be taken under ‘Prevention of Money Laundering Act, 2002’ even during the period of ‘Moratorium’.

6. Section 14 of the ‘I&B Code’ relates to declaration of ‘Moratorium’ for prohibiting some of the action as mentioned therein and reads as follows:

“14. Moratorium-(1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely:-

(a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, 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 shall not be terminated or suspended or interrupted during moratorium period.

(3) The provisions of sub-section (1) shall not apply to-

(a) such transactions as may be notified by the Central Government in consultation with any financial sector regulator.

(b) a surety in a contract of guarantee to a corporate debtor.]

(4) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process:

Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be.”

7. From a plain reading of Section 14, it is clear that the provision relates to

(i) ins