2020 (1) TMI 1250 - Tri - Insolvency and Bankruptcy

Permission for withdrawal of application - initiation of CIRP - judicial identity of entity to initiate CIRP - It is seen that notice under section 8 of IBC is initiated by the Proprietary firm and even under section 9 it is initiated by proprietary firm, which is not judicial person and it cannot initiate CIRP, in view of section 3(23) of IBC. In view of this, Ld. Counsel for the operational creditor seeks permission to withdraw the application with a liberty to file afresh. HELD THAT - Matter stands withdrawn and disposed off.

Summary

The Tribunal found that a proprietary firm, not being a judicial person, cannot initiate Corporate Insolvency Resolution Process (CIRP) under section 8 or 9 of the Insolvency and Bankruptcy Code (IBC). The operational creditor was allowed to withdraw the application with the liberty to file afresh, subject to the law of limitation. The matter was withdrawn and disposed of.