Summary
- The Delhi High Court has ruled that a property attachment under the Prevention of Money Laundering Act, 2002 cannot persist after the approval of a resolution plan under Section 32A of the Insolvency and Bankruptcy Code, 2016.
- In Dash Exports Private Limited's case, the court ordered the release of ₹3.01 crore fixed deposit as security for an attached property, emphasizing that prior attachments cannot survive if conditions are met.
- The ruling followed an appeal against a Tribunal decision that maintained the attachment despite the approved resolution plan's compliance with statutory requirements.
- This decision reinforces protections for qualifying insolvency resolutions while clarifying that corporate debtors must still assist investigations despite immunity granted to them and their assets.
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