Overlapping Issue: Insolvency and Bankruptcy Code, 2016 & Prevention of Money Laundering Act, 2002 and Judiciary’s Stance

Insolvency and Bankruptcy Code, 2016 (herein referred to as IBC) and Prevention of Money Laundering Act, 2002 (herein referred to as PMLA) are legislations dealing with diverse domains. However, a major conflict between the IBC and the PMLA exists in India. During the Corporate Insolvency Resolution Process (CIRP), while the PMLA aims to seize and attach any property or asset connected to money laundering, the IBC strives to enhance the value of the financial creditors' assets. This hampers the implementation of both legislations, depicting the inefficient implementation of their legislative material. This research paper aims to evaluate the friction between these two legislations. To have an insight into the paper, it has been divided into various segments. The paper unfolds with an introduction and overview of the two statutes. The next part deals with the distinct objectives and key provisions of these two statutes and the resolution process under IBC. The paper further discusses the point of conflict and the instances where the provisions of IBC and PMLA can overlap and lastly the problems faced by the corporate debtors and creditors and the stance of judiciary on certain cases.