Interplay Between The Insolvency Proceedings And Prevention Of Money Laundering Proceedings
- IJLLR Journal
- Jan 31
- 1 min read
Alisha Mehta, Masters’ program student at University of Toronto – Faculty of Law, former Associate at Wadia Ghandy & Co. (Ahmedabad) and Wadia Ghandy & Co. (Mumbai), and former student of Jindal Global Law School, O. P. Jindal Global University
ABSTRACT
The Insolvency and Bankruptcy Code, 2016 (“IB Code”) and the Prevention of Money Laundering Act, 2002 (“PMLA”) are two distinct legislations. The latter’s raison d’etre is to prevent money laundering and to provide for a mechanism to confiscate the property accrued from laundering money, the former legislation governs the framework for providing a resolution process for insolvency and bankruptcy as well as the liquidation process.
In this paper, by using the doctrinal approach, I intend to focus on how the two legislations lock horns in an ongoing dispute and their interplay in the Indian Courts. Further, since both the statutes are special legislations, I will also tackle the question of which legislation will trump the other in an ongoing dispute.
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