# In the matter of Committee of Creditors vs Directorate of Enforcement & Ors.

> SC judgment dated 2024-12-11. Citation: TCN-2024-SC-00007. The Civil Appeals arose out of SLP(C) Nos. 29327-29328/2019 filed by the Committee of Creditors…

- **Court:** SC
- **Order date:** 11 Dec 2024
- **Citation:** TCN-2024-SC-00007
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/committee-of-creditors-vs-directorate-of-enforcement-ors-6d828938

## Summary

### Background

The Civil Appeals arose out of SLP(C) Nos. 29327-29328/2019 filed by the Committee of Creditors against the Directorate of Enforcement and Others, challenging the order dated 10.10.2019 passed by the Directorate of Enforcement (E.D.) regarding provisional attachment of properties of the Corporate Debtor (Bhushan Power and Steel Ltd.) under the Prevention of Money Laundering Act (PMLA). The appeals also challenged the judgment dated 14.10.2019 passed by the National Company Law Appellate Tribunal (NCLAT) staying the E.D.'s order. Civil Appeal No. 3362 of 2020 was filed by the E.D. against JSW Steel Ltd. and Others, challenging the judgment dated 17.02.2020 passed by the NCLAT approving the Resolution Plan submitted by JSW Steel Ltd. These appeals were tagged with Civil

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## Facts

The Committee of Creditors filed appeals against the Directorate of Enforcement (E.D.) challenging the E.D.'s order of provisional attachment of properties belonging to the Corporate Debtor, Bhushan Power and Steel Ltd. The E.D.'s order was issued under the Prevention of Money Laundering Act (PMLA). The appeals also challenged the NCLAT's judgment staying the E.D.'s order. The E.D. also filed an appeal against JSW Steel Ltd. challenging the NCLAT's judgment approving JSW Steel's resolution plan. The NCLT had approved the Resolution Plan on 05.09.2019, which was under challenge before the NCLAT. The E.D. had provisionally attached the properties on 10.10.2019. The appeals were tagged with another civil appeal filed by Kalyani Transco against Bhushan Power and Steel Ltd.

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## Issues and analysis

### Issue 1: Whether the Directorate of Enforcement (E.D.) has the jurisdiction to attach the properties of the …

**Ratio:** The court did not explicitly state a ratio but implied that the handover of properties to

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**Reasoning:** The court considered the submissions of the counsels, the affidavit filed by the E.D.,

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**Interpretation:** The court acknowledged the interplay between the PMLA and the IBC, particularly

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**Application:** The court directed the E.D. to handover the properties to the successful

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## Parties

- **Judges:** BELA M. T…; SATISH CHANDRA…
- **Appellants:** Committee of…
- **Respondents:** BHUSHAN POWER AND…; DIRECTORATE OF…

## Timeline

- **2019-10-10 — ED Order…**: Directorate of Enforcement passed an order for provisional attachment of properties of…
- **2019-10-14 — NCLAT Jud…**: National Company Law Appellate Tribunal (NCLAT) passed a judgment staying the order of…

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