AI Structured Summary
Not yet generated for this judgment
Judgment
IA-2576/2019
It is an application filed by the RP for lifting attachment order given by the Enforcement Directorate over the funds of the corporate debtor lying in the accounts maintained with various Banks.
As against this, ED counsel submits once an attachment is ordered under Prevention of Money-laundering Act, 2002, it has to be deemed that this asset lying under the attachment is to be construed as proceeds of the crime, to that effect ED has already passed an order and the same was confirmed by the Adjudicating Authority.
Owing to paucity of time, instead of going in detail over this issue, by looking at prima facie case showing that the jural relationship in between UCO Bank and the corporate debtor is creditor and debtor relation and the same Bank having already made its claim before the RP of this corporate debtor, we hereby restrain the ED from realisation of funds based on attachment order mention in the application until further orders. This order will not have any bearing over the attachment order and the RP is also directed not to insist upon the Bank for release of funds until this application is disposed of.
List this application for hearing on 09.07.2020.