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Union Bank of India E Andhra Bank v. Union of India
In the immediate case, the Corporate Insolvency Resolution Process was launched against the corporate debtor, while implementation of the resolution plan was in progress, An impugned order for the provisional attachment of assets of the corporate debtor was passed by the Directorate of Enforcement under the Prevention of the Money-Laundering Act, 2002.
The Union Bank of India has approached the High Court challenging the provisional attachment order passed by the PMLA Adjudicating Authority i.e., et al.Deputy Directorate of Enforcement, under the Prevention of Money Laundering Act, 2002.
The Delhi High Court held that since the resolution plan had already been approved and ED's order of the provisional attachment of properties of the corporate debtor had been adopted after approval of the resolution plan by the NCLT, The provisional attachment would prima facie be contrary to section 32A, so there would be a stay of proceedings in Enforcement Case Information Report (ECIR) until next date.
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