# In the matter of Indu Projects Limited IA No. 15 of 2023 in IA No. 305-HDB-2023 in CP (IB) No. 372-7-HDB-2018

> NCLT judgment dated 2023-07-05. Citation: TCN-2023-NCLT-02666. The Enforcement Directorate (ED) filed an application seeking to implead itself in IANo.305 of…

- **Court:** NCLT
- **Order date:** 5 Jul 2023
- **Citation:** TCN-2023-NCLT-02666
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indu-projects-limited-ia-no-15-of-2023-in-ia-no-305-hdb-2023-in-cp-ib-no-372-7-h-d0dce70b

## Summary

### Background

The Enforcement Directorate (ED) filed an application seeking to implead itself in IANo.305 of 2023, arguing that it discovered the Resolution Plan approval application before the Tribunal. The ED claimed that some properties of the Corporate Debtor (CD) are under attachment under the Prevention of Money Laundering Act, 2002 (PMLA), and the Resolution Professional (RP) did not provide information about whether these properties were being put up for sale. The ED argued that selling tainted property with proceeds of crime is prohibited under PMLA, making the plan approval detrimental.

## Facts

The Enforcement Directorate (ED) sought to implead itself in IANo.305 of 2023, citing concerns that the Resolution Plan approval application involved properties of the Corporate Debtor (CD) attached under the Prevention of Money Laundering Act, 2002 (PMLA). The ED argued that the Resolution Professional (RP) had not disclosed whether these attached properties were being sold, which would violate PMLA. Respondent No. 1 countered that the ED lacked standing due to its prior silence and that the resolution process is governed by the IB Code, 2016, which should prevail over PMLA. The RP clarified that there was no proposal to sell the assets under attachment. The Corporate Debtor is Indu Projects Limited. The ED's application was based on the apprehension that assets under

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## Issues and analysis

### Issue 1: Whether the Enforcement Directorate has the locus standi to implead itself in IANo.305 of 2023 at …

**Ratio:** An applicant must demonstrate a sufficient legal interest and timely action to have locus

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**Reasoning:** The Tribunal noted that the Enforcement Directorate had been silent for a considerable

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**Interpretation:** Locus standi requires a party to have a direct and substantial interest in the

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**Application:** The Enforcement Directorate's prolonged silence and failure to participate in

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## Parties

- **Judges:** TELAPROLU…; SH. CHARAN…
- **Appellants:** ENFORCEMENT…
- **Respondents:** Indu Projects…; Anup Kumar…

## Timeline

- **2023-07-05 — Hearing…**: Hearing held on 05.07.2023 at 02:30 PM at the National Company Law Tribunal, Hyderabad…
- **N/A — Application…**: The Enforcement Directorate filed an application seeking to implead itself in IANo.305 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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