Section 9 IBC maintainability fails against one partner where the debt belongs to the partnership firm.

A Section 9 IBC application was held not maintainable against a single partner where the debt arose from the partnership firm and the bills were raised against the firm itself. The tribunal treated the alleged liability as belonging to the firm, not to one individual partner merely because that partner was a corporate entity. On that reading, proceedings against only one partner were misconceived, and the dismissal of the insolvency application was affirmed.

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Issues: Whether an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was maintainable against one partner of a partnership firm when the debt was due from the partnership firm.

Analysis: The debt in question arose from the partnership firm and the bills were raised against the firm. The partnership consisted of multiple partners, including corporate entities. On a proper reading of the Code, the proceeding under Section 9 could not be maintained against only one partner of such a firm merely because that partner was a corporate debtor. The liability alleged was that of the partnership firm, and the application was therefore misconceived against an individual partner of the firm.

Conclusion: The application under Section 9 was not maintainable against the respondent partner, and the rejection of the application was .

Final Conclusion: The appeal failed and the dismissal of the Section 9 application was affirmed.

Ratio Decidendi: A Section 9 insolvency application cannot be maintained against one partner of a partnership firm when the claim is due from the partnership firm itself.

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