MPID attachment and insolvency overlap: attached assets must go to the IRP, with depositor claims filed in CIRP.

The text addresses the interaction between the MPID Act attachment regime and a corporate insolvency resolution process under the Insolvency and Bankruptcy Code. It states that, once the NCLT admitted insolvency proceedings, the Interim Resolution Professional was entitled under sections 17 and 18 of the IBC to take control of the corporate debtor's assets and carry out statutory insolvency functions. Relying on the non obstante clauses in section 238 of the IBC and section 14 of the MPID Act, the court noted that no further orders could be passed under the MPID Act in relation to the attached properties and that the insolvency process would proceed with those assets. The attached movable and immovable assets were directed to be handed over, and the Competent Authority was directed to file and represent depositor claims before the IRP.

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Issues: Whether the assets attached under the Maharashtra Protection of Interests of Depositors (In Financial Establishments) Act, 1999 were required to be handed over to the Interim Resolution Professional appointed under the Insolvency and Bankruptcy Code, 2016, and whether the Competent Authority was required to file claims on behalf of depositors before the Interim Resolution Professional.

Analysis: The order noted that the corporate insolvency resolution process had been admitted by the National Company Law Tribunal and that, under sections 17 and 18 of the Insolvency and Bankruptcy Code, 2016, the Interim Resolution Professional was to take control of the corporate debtor's assets and perform the statutory functions attached to the insolvency process. It also considered the non obstante clauses in section 238 of the Insolvency and Bankruptcy Code, 2016 and section 14 of the Maharashtra Protection of Interests of Depositors (In Financial Establishments) Act, 1999, together with the earlier Bombay High Court view on the relationship between the MPID regime and winding up proceedings. On that basis, the Court held that further orders under the MPID Act could not be passed in respect of the attached properties belonging to the corporate debtor and that the insolvency process was to proceed with those assets.

Conclusion: The application was allowed, the attached movable and immovable assets identified in the order were directed to be handed over to the applicant, and the Competent Authority was directed to file and represent the depositors' claims before the Interim Resolution Professional.

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