Creditor facing PMLA investigation cannot be part of Committee of Creditors, NCLATNovember 24 2019
The National Company Law Appellate Tribunal (NCLAT) has held that a creditor against whom a money laundering case has been initiated cannot be allowed to be a member of the Committee of Creditors for a corporate insolvency resolution process.
The NCLAT has further held that after the Committee of Creditors has been constituted and three months have elapsed, the Resolution Professional is not competent to entertain applications for inclusion of more Financial Creditor without the permission of the Committee.
The Judgment was passed . . .
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