Delhi HC orders ED not to take coercive action in IBC cases

The Delhi High Court, in its latest ruling, has backed the legitimacy of the Insolvency and Bankruptcy Code (IBC) restraining any coercive action by the Enforcement Directorate (ED) against a company undergoing liquidation process approved by the National Company Law Tribunal (NCLT). In a detailed ruling on the interplay between IBC and Prevention of Money Laundering Act (PMLA), the Delhi HC has allowed a writ petition by a liquidator to proceed with the liquidation process of the corporate debtor.