Student at Kirit P. Mehta School of Law, NMIMS Mumbai, India
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.
Research Paper
International Journal of Law Management and Humanities, Volume 7, Issue 3, Page 4247 - 4256
DOI: https://doij.org/10.10000/IJLMH.117918This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.
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