2022 (6) TMI 52

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....ankruptcy (Application to Adjudicating Authority) Rules, 2016, filed by Mr. Raj Kumar Agarwal, Director, Ganapati Merchantile Pvt. Ltd. ('Financial Creditor'), duly authorized Power of Attorney-cum-Authorization - Page 18-21 of the Petition vide Letter of Authorization dated 16th December 2019 to initiate Corporate Insolvency Resolution Process ('CIRP') against Bansidhar Agarwalla and Company Private Limited ('Corporate Debtor'). 3. The present Petition has been filed on the grounds that the Corporate Debtor had committed default in paying Rs. Rs. 21,49,277 (Rupees Twenty-One Lakhs Forty-Nine Thousand Two Hundred and Seventy-Seven only) as on 1st August 2019. The date of default is stated to be 01st August 2019. 4.....

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.... the petition. 4.4. The Financial Creditor has proposed the name of Mr. Ajay Goyal, registration number IBBI/IPA-001/IP-P01083/2017-2018/11783, email: [email protected], as Interim Resolution Professional (IRP) of the Corporate Debtor to carry out the functions as per the Code and has annexed Form-2 i.e., Written Communication in terms of Rule 9 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 4.5. The financial creditor submitted the following documents to prove the existence of a Debt- i. Ledger copy of loan sanctioned, ii. Copy of Confirmation of Accounts by way of a letter by the corporate debtor, iii. Statement of Account of Financial Creditor with Axis Bank showing credit received in resp....

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....aring on behalf of the Corporate Debtor and perused the pleadings filed by the parties. 7. Section 3(7) of the code provides as under: "Corporate Person" means a company as defined in clause (20) of section 2 of the Companies Act, 2013, a limited liability partnership, as defined in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008, or any other person incorporated with limited liability under any law for the time being in force but shall not include any financial service provider." 8. In light of the above, the question that needs to be replied is whether the insolvency proceedings under the code can be initiated against the sole proprietorship firm. Now, the preamble of the code provides as foll....