Proprietary firm barred from initiating Corporate Insolvency Process under Insolvency and Bankruptcy Code.

The Tribunal held that a proprietary firm cannot commence Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code. The operational creditor was permitted to withdraw the application with the option to refile within the limitation period.

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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 The matter was withdrawn and disposed of.

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