NCLAT: PMLA overrides IBC; ED keeps attached assets

The National Company Law Appellate Tribunal (NCLAT) ruled that the Insolvency and Bankruptcy Code (IBC) cannot supersede the Prevention of Money Laundering Act (PMLA), upholding asset attachments. This decision prevents the release of assets seized by the Enforcement Directorate (ED) for resolution. The NCLAT's ruling stems from a case involving Dunar Foods, whose assets worth Rs 177.33 crore were attached by the ED. The tribunal affirmed that assets linked to alleged criminal proceeds, and confirmed under PMLA, are not part of the resolution estate. The ruling reinforces that the ED's actions under PMLA, a penal statute, take precedence over IBC proceedings. The NCLAT dismissed a plea by Dunar Foods' resolution professional, who sought to release the attached assets.