2022 (10) TMI 433

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....r of Vijender Kumar Jain proprietor of M/s Arihant Cycles (hereinafter referred as applicant) against M/s. Atlas cycles (Haryana) Limited (hereinafter referred to as "Respondent") in CP (IB) No. 217/Chd/Hry/2020 to substitute the name of Vijender Kumar Jain and allow her to continue the proceedings in the present petition. 2. The brief facts of the case are that operational creditor has filed a petition under Section 9 of IBC, 2016 for initiation of Corporate Insolvency Resolution Process. However, during the said proceedings, Mr. Vijender Kumar Jain expired intestate leaving behind 5 legal heirs. The four legal heirs have executed relinquishment deed in favour of the applicant. It is stated that the said application is filed with limitati....

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....entities. 5. The applicant has filed a rejoinder vide Dairy No. 00904/5 Dated 03.01.2022 wherein it has been stated that the applicant is Class I legal heir of the deceased has subrogated into his shoes, so the applicant has become the operational creditor. The very definition under Section 5(20) of IBC, 2016 as relied upon by the Respondent clearly provides that the Operational creditor includes a person to whom the debt is assigned or transferred. Here, the debt has been transferred in the name of the applicant by operation of law and hence the applicant is the operational creditor and relied upon the judgement of Hon'ble NCLAT in FIPOLA RETAIL (INDIA) PRIVATE vs M2N INTERIORS Company Appeal (AT) (CH) (INS) No. 89 of 2021 dated 01.09.202....

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....n." 12. Taking into consideration of the aspects and relying upon the decision tribunal is of the view that the Application filed by the Respondent .e., M/s.M2N Interiors, a proprietorship firm is maintainable and accordingly this Tribunal does not find any illegality in the common order passed by the Adjudicating Authority dated 01.02.2021." 6. We have heard learned counsel for the applicant and learned counsel for the respondent and have pursued the records carefully. 7. It is observed that the applicant is a legal heir along with four other legal heirs(daughters) of Vijender Kumar Jain, who was running a proprietorship concern under the name of Arihant Cycles. The copy of death certificate of Vijender Kumar Jain and the relinquishm....