New Delhi, Feb. 25 -- The Supreme Court on Tuesday upheld a ruling of the National Company Law Appellate Tribunal (NCLAT), holding that attachment of properties under the Prohibition of Benami Property Transactions Act, 1988 can be challenged only before authorities under that Act and not before the NCLT under the Insolvency and Bankruptcy Code, 2016 (IBC).

A Bench of Justices P.S. Narasimha and Atul S. Chandurkar dismissed an appeal against the NCLAT judgment, which had upheld provisional attachment of certain properties of a company during the pendency of corporate insolvency resolution proceedings (CIRP).

Background of the Case

The case stemmed from insolvency proceedings against Padmaadevi Sugars Ltd and a parallel attachment of it...