Calcutta High Court: FEMA Proceedings Cannot be Continued During IBC Liquidation Moratorium Period

The Calcutta High Court has held that once liquidation is initiated under Section 33(5) of the IBC, proceedings under the FEMA cannot continue.

The ruling came in a case involving Shree Ganesh Jewellery House (I) Pvt. Ltd., where the Court quashed FEMA notices issued under Section 37A, citing the overriding effect of IBC through Section 238.

The court emphasized that post-liquidation, no proceedings can be initiated or continued without prior approval from the Adjudicating Authority, reaffirming IBC’s primacy over conflicting laws, including FEMA.