Delhi HC stops coercive action by ED against firms under liquidation in IBC

In a detailed ruling on interplay between IBC and PMLA, the court allowed a writ petition by a liquidator to proceed with the liquidation process of a corporate debtor

The Delhi high court in its latest ruling has backed the legitimacy of the insolvency and bankruptcy law restraining any coercive action by the Enforcement Directorate against a company undergoing liquidation process approved by the national company law tribunal.

In a detailed ruling on interplay between IBC and Prevention of Money Laundering Act (PMLA), the Delhi HC has allowed a writ petition by a liquidator to proceed with the liquidation process of the corporate debtor.

The court has stopped the Enforcement Directorate from taking any further action, coercive or otherwise, against the liquidation estate of the corporate debtor or the