AM Mining India Private Limited (AMMIPL) filed a writ petition in the High Court of Gujarat challenging the provisional attachment of land it had purchased in the liquidation process of ABG Shipyard Limited, by the Directorate of Enforcement (ED) under the Prevention of Money Laundering Act (PMLA). The ED's action was based on allegations of money laundering against ABG Shipyard. AMMIPL argued that the attachment was illegal because it violated provisions of the Insolvency and Bankruptcy Code (IBC), which should override the PMLA in this instance, especially considering AMMIPL was a bonafide purchaser in the liquidation process. The NCLT had approved the liquidation, and AMMIPL had been declared the successful bidder for the land.
ABG Shipyard Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by ICICI Bank Ltd. After CIRP failed, liquidation proceedings commenced, and Sundaresh Bhat was appointed as the liquidator. AM Mining India Private Limited (AMMIPL) participated in the liquidation process and emerged as the successful bidder for a parcel of land owned by ABG Shipyard, bidding INR 189,50,00,000. AMMIPL paid INR 68,22,00,000 towards the land acquisition. Subsequently, the Enforcement Directorate (ED) provisionally attached the land under Section 5 of the Prevention of Money Laundering Act (PMLA) due to alleged money laundering by ABG Shipyard. This attachment was confirmed by the adjudicating authority. AMMIPL challenged the attachment, arguing it was a bonafide
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Corporate Insolvency Resolution Process…
Liquidation proceedings…
AM Mining India Private Limited (AMMIPL) filed a writ petition in the High Court of Gujarat challenging the provisional attachment of land it had purchased in the liquidation process of ABG Shipyard Limited, by the Directorate of Enforcement (ED) under the Prevention of Money Laundering Act (PMLA). The ED's action was based on allegations of money laundering against ABG Shipyard. AMMIPL argued that the attachment was illegal because it violated provisions of the Insolvency and Bankruptcy Code (IBC), which should override the PMLA in this instance, especially considering AMMIPL was a bonafide purchaser in the liquidation process. The NCLT had approved the liquidation, and AMMIPL had been declared the successful bidder for the land.
ABG Shipyard Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by ICICI Bank Ltd. After CIRP failed, liquidation proceedings commenced, and Sundaresh Bhat was appointed as the liquidator. AM Mining India Private Limited (AMMIPL) participated in the liquidation process and emerged as the successful bidder for a parcel of land owned by ABG Shipyard, bidding INR 189,50,00,000. AMMIPL paid INR 68,22,00,000 towards the land acquisition. Subsequently, the Enforcement Directorate (ED) provisionally attached the land under Section 5 of the Prevention of Money Laundering Act (PMLA) due to alleged money laundering by ABG Shipyard. This attachment was confirmed by the adjudicating authority. AMMIPL challenged the attachment, arguing it was a bonafide
…Corporate Insolvency Resolution Process…
Liquidation proceedings…