• IBC (enacted in 2016) provides a consolidated, time-bound legal framework to resolve insolvency for corporate and individual debtors, aimed at maximizing asset value and enabling efficient debt recovery in financial distress.
• PMLA (enacted in 2002) is a penal statute aimed at preventing and controlling money laundering, confiscating proceeds of crime, and penalizing offenders who launder illicit money.

• IBC focuses on insolvency resolution or liquidation to revive viable businesses or close unviable ones, protecting creditors' interests and ensuring orderly asset distribution.
• PMLA focuses on law enforcement actions against criminal proceeds, empowering authorities like the Enforcement Directorate (ED) to seize and attach assets linked to money laundering.

• The IBC imposes a moratorium on legal proceedings against the insolvent entity during resolution, but this moratorium does not automatically apply to PMLA proceedings, which can continue independently.
• The conflict arises especially when assets of a corporate debtor are attached under PMLA for alleged money laundering while insolvency resolution under IBC is underway.
• Courts have clarified that PMLA’s objective to strip illicit gains is distinct and cannot be overridden by IBC provisions. Section 32A of IBC provides immunity to resolution applicants only after plan approval and does not hinder PMLA actions before that.
• The government, acting under PMLA, is not a creditor in insolvency but a law enforcement authority aiming to recover proceeds of crime.

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