# In the matter of Reward Business Solutions Private Limited

> NCLT judgment dated 2023-12-18. Citation: TCN-2023-NCLT-00179. The case involves an application filed by the Resolution Professional (RP) of a Corporate…

- **Court:** NCLT
- **Order date:** 18 Dec 2023
- **Citation:** TCN-2023-NCLT-00179
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/reward-business-solutions-private-limited-8b634012

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of a Corporate Debtor seeking the release of two assets (a bank account and a property) that were provisionally attached by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002 (PMLA). The ED had provisionally attached the assets on 27.11.2020. The RP argued that the provisional attachment had lapsed because the ED did not confirm it within the statutory 180-day period as required by PMLA. The ED contended that the National Company Law Tribunal (NCLT) lacked jurisdiction and that PMLA superseded the Insolvency and Bankruptcy Code (IBC), 2016. The ED also claimed to have approached the Delhi High Court for relaxation of the 180-day limit due to the COVID-19 pandemic.

## Facts

1. The Applicant was appointed as the Resolution Professional of the Corporate Debtor.
2. The Resolution Professional filed an application seeking the release of two assets of the Corporate Debtor: a current account and a property.
3. These assets were provisionally attached by the Enforcement Directorate (ED) under Section 5(1) of the Prevention of Money Laundering Act, 2002 (PMLA) on 27.11.2020.
4. The ED's provisional attachment was based on Provisional Attachment Order No. 15/2020.
5. The Resolution Professional argued that the provisional attachment lapsed because the ED did not confirm it within 180 days, as required by Section 5(3) of PMLA.
6. The 180-day period expired on 26.05.2021.
7. The ED argued that the NCLT lacked jurisdiction and that PMLA superseded IBC.
8.

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## Issues and analysis

### Issue 1: Whether non-issuance of confirmation of Provisional Attachment Order within 180 days [on account of …

**Ratio:** The statutory time limit of 180 days under PMLA 2002 for confirming a provisional

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**Reasoning:** The court reasoned that the lapse of the 180-day statutory time limit under Section 5(1)

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**Interpretation:** This interpretation emphasizes the strict adherence to the statutory timelines

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**Application:** In this case, since the ED failed to confirm the provisional attachment within

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## Parties

- **Judges:** Reeta K…; SANJIV…
- **Appellants:** Piyush Kisanlal…
- **Respondents:** Reward Business…; Directorate of…

## Timeline

- **2020-11-27 — Provisional Attachment…**: The Enforcement Directorate (ED) provisionally attached assets of the Corporate Debtor…
- **2021-02-18 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor…

## 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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