# In the matter of AM Mining India Private Limited vs. Union of India

> HC judgment dated 2023-08-24. Citation: TCN-2023-HC-00040. AM Mining India Private Limited (AMMIPL) filed a writ petition in the High Court of Gujarat…

- **Court:** HC
- **Order date:** 24 Aug 2023
- **Citation:** TCN-2023-HC-00040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/am-mining-india-private-limited-vs-union-of-india-b0b4e350

## Summary

### Background

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.

## Facts

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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## Issues and analysis

### Issue 1: Whether the respondent authority under the PMLA Act, 2002 would retain jurisdiction or authority to …

**Ratio:** Section 32A of the IBC provides immunity to the corporate debtor and its assets from

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**Reasoning:** The court reasoned that the IBC, particularly Section 32A, aims to protect bonafide

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**Interpretation:** The court interpreted Section 32A, 33(5), and 238 of the IBC to mean that the

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**Application:** The court applied the ratio to the facts of the case, finding that AMMIPL was a

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## Parties

- **Judges:** VAIBHAVI D.…
- **Appellants:** AM MINING INDIA…
- **Respondents:** ABG Shipyard…; Union of…
- **Other parties:** Kohi…

## Timeline

- **2017-08-01 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against ABG Shipyard by the…
- **2019-04-25 — Liquidation…**: Liquidation proceedings initiated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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