ED Attachment Not Verified: NCLAT Orders Fresh Inquiry

This article reports on an NCLAT decision where it found that the NCLT committed a manifest illegality by not properly verifying an Enforcement Directorate (ED) attachment order. The article explains the interaction between proceedings under the PMLA and insolvency processes under the IBC. It details how the tribunal emphasized due process, verification of facts, and the need for judicial application of mind before passing orders that affect asset control and creditor rights. The piece also outlines the significance of the ruling for future cases involving parallel proceedings under anti-money laundering and insolvency laws.