Khaitan & Co advised the Liquidator of Shree Ganesh Jewellery House (I) Limited on successful challenge to FEMA seizure
Khaitan & Co advised the Liquidator of Shree Ganesh Jewellery House (I) Limited (“Corporate Debtor”) on successfully challenging a provisional order of seizure over the Corporate Debtor’s assets issued under the Foreign Exchange Management Act, 1999 (FEMA) by the Enforcement Directorate. The challenge was filed before the Hon’ble High Court at Calcutta pursuant to the initiation of the Corporate Debtor’s corporate insolvency resolution process (CIRP) and subsequent liquidation under the Insolvency and Bankruptcy Code, 2016 (IBC).
The High Court set aside both the provisional seizure order and its subsequent confirmation, holding that the seizure was impermissible in light of the moratorium under Sections 14 and 33(5) of the IBC, which override FEMA provisions. This judgment reinforces the primacy of IBC in matters involving insolvency and liquidation, especially when parallel regulatory actions are initiated under other laws.
Khaitan & Co advised the Liquidator in all legal aspects and represented the Writ Petitioner before the High Court.
The Khaitan & Co team was led by Dr Nand Gopal Khaitan (Partner), with support from Dipen Chatterjee (Partner), Shounak Mitra (Partner), and Saptarshi Mandal (Principal Associate).
Click to know more about Khaitan & Co.
If you have a news or deal publication or would like to collaborate on content, columns, or article publications, connect with the Legal Era News Network Team and email us at [email protected] or call us on +91 8879634922.