New Delhi, July 7 -- The National Company Law Appellate Tribunal (NCLAT) has ruled that the Insolvency and Bankruptcy Code (IBC) cannot supersede the Prevention of Money Laundering Act (PMLA) when it comes to assets attached by the Directorate of Enforcement (ED).

The appellate tribunal declared that assets of debt-ridden companies, once attached by ED and confirmed by competent authorities, cannot be released for resolution purposes under insolvency proceedings.

The three-member NCLAT bench clarified that while Section 14 of the IBC typically imposes a moratorium on assets for resolution purposes, properties alleged to be 'proceeds of crime' and already under adjudication by competent authorities under penal statutes cannot be consider...