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Statutory Immunity Advisory • IBC Section 32A & PMLA Defense

Section 32A Clean Slate Shield & Regulatory Attachment Immunity

Acquiring a distressed debtor must not inherit legacy criminal exposure or statutory attachments. Under Section 32A of the IBC, affirmed by the Supreme Court in Manish Kumar v. Union of India, an approved resolution applicant gains absolute immunity from offenses committed by erstwhile promoters, and attached assets (including Enforcement Directorate PMLA provisional attachments) are released. We draft court-tested Section 32A declaratory prayers in your plan and represent you before NCLT and High Courts.

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Section 32A Clean Slate Immunity & PMLA Defense Retainer

Privileged & Confidential

Submissions are protected under Advocate-Client Privilege pursuant to Section 126 of the Indian Evidence Act, 1872 / BSA 2023.

Statutory Immunity Architecture

4 Levels of Statutory Protection Under Section 32A

Supreme Court Affirmed
SHIELD 01

ED & PMLA Release

Section 32A(2) explicitly bars the attachment or seizure of corporate debtor assets post-approval for pre-CIRP offenses under the Prevention of Money Laundering Act (PMLA).

SHIELD 02

Tax & Regulatory Extinguishment

Pursuant to Ghanshyam Mishra, all claims by government authorities (GST, Income Tax, Customs, State Dues) not included in the resolution plan stand extinguished permanently.

SHIELD 03

Directorate Insulation

Incoming directors and management appointed by the successful resolution applicant are immune from prosecution for historical statutory non-compliances under the Companies Act.

SHIELD 04

Court Declaratory Orders

We secure specific, non-delegable declaratory directions in the final NCLT Section 31 approval order commanding all state authorities to de-freeze bank accounts and clear land titles.

Supreme Court Jurisprudence on Section 32A
Manish Kumar v. Union of India & Ors. (2021) 5 SCC 1

A 3-judge bench of the Supreme Court upheld the constitutionality of Section 32A, holding that a successful resolution applicant must be given a completely clean slate to make a fresh start and resuscitate the corporate debtor without fear of past promoter crimes.

Ghanshyam Mishra & Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction (2021) 9 SCC 657

Reiterated the "clean slate" doctrine, establishing that once a resolution plan is approved by the CoC and NCLT, no surprise or legacy claim from Central or State Government authorities can survive or be agitated against the successful bidder.