The provisions of the I&B Code, particularly Section 32A, grant immunity to the Successful Resolution Applicant from prior offences, allowing the resolution plan to proceed independently of assets seized under PMLA.

ORDER

1. The Applicant has sought the following reliefs from this Tribunal: -

A. To direct the Respondent. Assistant Director of Directorate of Enforcement, Zonal Office, Lucknow to release the provisional (or final, if confirmed) attachment on all the assets and properties of the CD and released the assets/properties of the RP/applicant;

B. To direct the Respondent. Assistant Director of Directorate of Enforcement, Zonal Office, Lucknow to release and handover all the seized documents, relating to the assets of the CD and this CIRP;

C. Any other order as this Hon’ble Tribunal deems fit in this regard;

2. The Applicant discovered that the assets of the Corporate Debtor had been provisionally attached under section 5 of the Prevention of Money Laundering Act, 2002 (PMLA) by the Joint Director of Directorate of Enforcement, Zonal office, Lucknow, pursuant to an order dated 30.03.2013, in a proceeding initiated under the Prevention of Money Laundering Act, 2002 (PMLA) against the Corporate Debtor’s promoter or directors. The order dated 30.03.2013 for provisional attachment of assets of the CD passed by the Joint Director of ED has been confirmed by the Adjudicating Authority mentioned under section 6 of PMLA vide order 26.09.2013.

3. Being aggrieved by the provisional order dated 26.09.2013, Applicant preferred an appeal before the Appellate Tribunal, Prevention of Money Laundering Act, New Delhi having Appeal No. FPA-PMLA- 596/LKW/2014 under section 26 of PMLA for detachment of the assets of the Corporate Debtor. The Hon’ble Appellate Tribunal has allowed the appeal and set aside the order dated 26.09.2013 and modified the Provisional Attachment Order (PAO) dated 30.03.2013 in relation to properties of M/s Renu Residency Pvt. Ltd. and directed the appellant to move/file an application before the Special Court under Section 8(8) of PMLA to release the assets. The relevant para is reproduced below: -

“43. In view of the amendment of sub section 8 proviso (1) and (2), the bank is at liberty to move its claim before the Special Court for disposing of the said property in accordance with law. The present appeals are accordingly disposed of in view of aforesaid directions. Till that time, all parties to the appeals shall not sell and dispose off the property as per details mentioned in para 3of earlier part of my order in any manner directly or indirectly. The same can only be disposed in order to recover the amount due once the Special Court will pass the appropriate orders."

Copy of order dated 19.07.2018 passed by the Appellate Tribunal, Prevention of Money Laundering Act; New Delhi has been annexed as Annexure No.4 with the Application.

4. Applicant submits that the Resolution Plan submitted by the SRA is not interdependent on the release of the assets of the Enforcement Authority and the plan would be implemented in accordance with the provisions of the Code. The Applicant has filed an application bearing I.A No. 131 of 2022. However, once this plan is approved, then under section 32A of the Code, seizure of any assets of the Corporate Debtor would get released.

5. Subsequently, the Appellant/Bank has moved an application before the Special Court to release the assets in their favour in view of the order dated 19.07.2018 passed by the Appellate Tribunal. However, the Special Court vide order dated 08.05.2019 declined to release the assets/properties in their favour.

6. After this, the Applicant has approached the Asst. Director of ED and provided him the list of assets of the CD which were provisionally attached by the Joint Director of ED and requested to handover the custody of the assets of CD in pursuance of provisions of I&B Code, 2016.