Moratorium u/s 14 of IBC Does Not Bar ED's Provisional Attachment Under PMLA: NCLAT

The NCLAT (National Company Law Appellate Tribunal) has ruled that moratorium under Section 14 of the IBC (Insolvency and Bankruptcy Code) "does not bar ED's provisional attachment under PMLA." Section 14 imposes a moratorium on legal proceedings against a corporate debtor during CIRP. However, this crucial judgment clarifies that this moratorium does not extend to actions taken by the Enforcement Directorate under PMLA, particularly provisional attachments of properties linked to proceeds of crime. This reinforces the overriding nature of PMLA actions in cases of financial crime, even during insolvency proceedings.