# In the matter of Rotomac Global Pvt. Ltd. (Through Anil Goel, Liquidator) Vs. Deputy Director, Directorate of Enforcement CA(AT)(Insolvency) No. 140-2019

> NCLAT judgment dated 2019-07-02. Citation: TCN-2019-NCLAT-00491. The case involves an appeal against an order dated 10th January 2019, passed by the NCLT,…

- **Court:** NCLAT
- **Order date:** 2 Jul 2019
- **Citation:** TCN-2019-NCLAT-00491
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rotomac-global-pvt-ltd-through-anil-goel-liquidator-vs-deputy-director-directora-015520fb

## Summary

### Background

The case involves an appeal against an order dated 10th January 2019, passed by the NCLT, Allahabad Bench, in I.A. No. 150/2018 in CP No. (IB) 70/ALD/2017. The Bank of Baroda initiated a Corporate Insolvency Resolution Process (CIRP) against Rotomac Global Private Limited (Corporate Debtor). After the CIRP concluded without a viable resolution plan, the Adjudicating Authority ordered the liquidation of the Corporate Debtor. The Directorate of Enforcement (DoE) initiated an investigation for offences under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, based on information from the CBI. The DoE passed a Provisional Attachment Order attaching the properties of the Corporate Debtor and its Directors. The Liquidator filed an application seeking direction

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## Facts

The Bank of Baroda initiated Corporate Insolvency Resolution Process (CIRP) against Rotomac Global Private Limited, the Corporate Debtor. The CIRP failed to produce a viable resolution plan, leading to a liquidation order by the Adjudicating Authority. The Directorate of Enforcement (DoE) initiated an investigation under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, based on information from the CBI dated 18th February, 2018, alleging offences under Section 420, 467, 471, 468 & 120-B IPC and Section 13(2) r/w 13(1)(d) of the Prevention and Corruption Act. The investigation revealed that accused persons misappropriated/diverted bank funds, committed criminal breach of trust, and laundered the diverted money. The DoE passed a Provisional

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## Issues and analysis

### Issue 1: Whether the provisions of the Prevention of Money Laundering Act, 2002, relating to proceeds of …

**Ratio:** The Prevention of Money Laundering Act, 2002, relates to 'proceeds of crime' and the

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**Reasoning:** The Tribunal reasoned that the PMLA operates in a different field of penal action

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**Interpretation:** The interpretation is that the PMLA and IBC operate in distinct domains. The

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**Application:** The Tribunal applied this reasoning to the case by stating that the attachments

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Respondents:** Rotomac Global…; DEPUTY DIRECTOR,…
- **Advocates:** Kanishk K…; Abhishek Pratap…; +2 more

## Timeline

- **2017-01-01 — CP Filed…**: CP No. (IB) 70/ALD/2017…
- **2018-02-18 — CBI Infor…**: CBI provided information/material…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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