Section 32A of the IBC was applied to determine whether...

Section 32A of the IBC was applied to determine whether money-laundering proceedings could continue against a corporate debtor whose resolution plan had been approved and substantially implemented. Since the statutory immunity attaches post-resolution, the corporate debtor was directed to be deleted from the array of accused, while prosecution could continue against erstwhile directors/persons in control and other conspirators/abettors, including confiscation of their own attached assets, if any. The protection was made conditional on the successful resolution applicant being unconnected with prior management and not a beneficiary of proceeds of crime; if investigation undermines this foundation, the enforcement agency may proceed in accordance with law, including questioning the resolution plan. The enforcement agency's challenge to plan approval was closed; it was held to have no right or lien over assets forming part of the approved plan, and deposits were ordered to be refunded with interest. - SC