The Principal Bench of the National Company Law Tribunal (NCLT) has directed market regulator Securities and Exchange Board of India (Sebi) to de-attach the properties of a corporate debtor which were attached during the execution proceedings.
“Sebi is directed to de-attach the properties of the corporate debtor and hand over the possession to the Resolution Professional to conduct the Corporate Insolvency Resolution Process (CIRP) expeditiously, in accordance with the timeline in the Code.”
NCLT further observed that Sebi is bound by the directions issued by the Securities Appellate Tribunal (SAT), and that provisions of IBC would thereby come into conflict with theh step of Sebi.
After examining the issue surrounding the present case, the RP had requested NCLT to de-attach the company properties in view of Section 14 of IBC, which imposes a moratorium on the properties of the corporate debtor’s.
The tribunal observed that the Income Tax Department had already de-attached the properties belonging to the corporate debtor, and hence the RP could proceed with the possession.
The tribunal’s order establishes the IBC’s superiority over other laws which at times cause hinderances during the CIRP.