# In the matter of Mateshwari Minerals Proprietorship Firm Vs. Jet Granito Private Limited CA (AT) (Ins) No. 776 of 2020

> NCLAT judgment dated 2021-02-24. Citation: TCN-2021-NCLAT-00356. The appeal was filed against an order dated 2020-02-28 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 24 Feb 2021
- **Citation:** TCN-2021-NCLAT-00356
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mateshwari-minerals-proprietorship-firm-vs-jet-granito-private-limited-ca-94d893f0

## Summary

### Background

The appeal was filed against an order dated 2020-02-28 passed by the National Company Law Tribunal (NCLT), Ahmedabad Bench, which dismissed an application filed by M/s. Mateshwari Minerals, a proprietorship firm, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The NCLT dismissed the application on the technical ground that it was filed in the name of the proprietorship firm, which is not a legal entity.

## Facts

M/s. Mateshwari Minerals, a proprietorship firm represented by Mr. Piyush Bangar, filed an application under Section 9 of the IBC as an operational creditor against Jet Granito Private Limited. The NCLT, Ahmedabad Bench, dismissed the application on the ground that it was filed in the name of the proprietorship firm, which is not a legal entity. The application was initially filed in the name of the firm M/s. Mateshwari Minerals instead of the proprietor Mr. Piyush Bangar. The NCLT held that the application was not maintainable because a proprietorship firm is not a legal entity. The appellant argued that the definition of 'person' under Section 3(23) of the IBC is inclusive and that the defect was curable. The respondent argued that the application was not

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## Issues and analysis

### Issue 1: Whether a proprietorship firm can file a proceeding/suit as an operational creditor under the …

**Ratio:** A proprietorship firm is not a legal entity separate from its proprietor. Therefore, any

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**Reasoning:** The Adjudicating Authority dismissed the application because it was filed in the name of

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**Interpretation:** The term 'person' as defined in Section 3(23) of the IBC includes an

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**Application:** In this case, the application was filed in the name of M/s. Mateshwari

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## Parties

- **Judges:** A.I.S. C…; Alok Sriv…
- **Appellants:** M/s. Mateshwari…
- **Respondents:** Jet Granito…
- **Advocates:** Puneet…; Shaili…

## Timeline

- **2020-02-28 — Order by…**: The National Company Law Tribunal (NCLT), Ahmedabad Bench, passed an order dismissing the…
- **2021-02-24 — Appeal F…**: The Appellant filed an appeal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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