# In the matter of Mayfair Leisures Limited IA NO. 608 of 2020 in CP (IB) NO. 213-7-NCLT-AHM-2018

> NCLT judgment dated 2023-03-06. Citation: TCN-2023-NCLT-04304. The case involves an application filed by the Interim Resolution Professional (IRP) of Mayfair…

- **Court:** NCLT
- **Order date:** 6 Mar 2023
- **Citation:** TCN-2023-NCLT-04304
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mayfair-leisures-limited-ia-no-608-of-2020-in-cp-ib-no-213-7-nclt-ahm-2018-798e9101

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) of Mayfair Leisures Limited under Section 60(5) and 14 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the release of property attached by the Enforcement Directorate (ED). Mayfair Leisure Limited was admitted into the Corporate Insolvency Resolution Process (CIRP) on 02.06.2020. The ED had attached the corporate debtor's property under the Prevention of Money Laundering Act (PMLA), 2002, prior to the CIRP commencement. The IRP argues that the ED's attachment hinders his ability to take possession and dispose of the property. The ED contends that the attachment is related to a money laundering case involving Diamond Power Infrastructure Ltd. (DPIL) and that PMLA proceedings

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## Facts

M/s. Mayfair Leisure Limited was admitted into Corporate Insolvency Resolution Process (CIRP) on 02.06.2020. The Bank of India filed the petition under section 7 of IBC. The Enforcement Directorate (ED) had attached the property of Mayfair Leisure Limited vide its provisional attachment order dated 24.04.2018, which was confirmed by the Hon'ble PMLA Appellate Tribunal. The ED's action was based on a money laundering case recorded under ECIR/AMZO/03/2018 dated 05.04.2018, related to FIR no. 0292018A0006 filed by the CBI against M/s. Diamond Power Infrastructure Ltd. (DPIL) and its directors. DPIL allegedly diverted funds received as loan/cash to related parties, including Mayfair Leisures Ltd., and utilized these funds for real estate business. The ED traced immovable

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## Issues and analysis

### Issue 1: Whether the NCLT has the jurisdiction to order the release of properties attached by the …

**Ratio:** The NCLT does not have jurisdiction to interfere with matters governed by the PMLA. The

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**Reasoning:** The court relied on the judgment of the Hon'ble High Court of Madras in Deputy Director,

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**Interpretation:** The interpretation is that the IBC's moratorium provision is not intended to

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**Application:** The court applied this principle to the facts of the case, noting that the ED

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## Parties

- **Judges:** Madan B.…; Mr.Kaushalendra…
- **Appellants:** Chandra Prakash…
- **Respondents:** Mayfair Leisures…; Director of…

## Timeline

- **2020-06-02 — CIRP Admi…**: Mayfair Leisure Limited admitted into Corporate Insolvency Resolution Process (CIRP) vide…
- **2018-04-24 — ED Attachmen…**: Enforcement Directorate (ED) issued…

## 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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