# In the matter of Cookme (Spice) Pvt  Ltd. CP(IB) No. 202-KB-2018

> NCLT judgment dated 2019-11-25. Citation: TCN-2019-NCLT-00477. Sanjay Stores, an operational creditor, filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 25 Nov 2019
- **Citation:** TCN-2019-NCLT-00477
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cookme-spice-pvt-ltd-cpib-no-202-kb-2018-ee4e56ac

## Summary

### Background

Sanjay Stores, an operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against M/s. Cookme(Spice) Pvt. Ltd., the corporate debtor, alleging default in payment of Rs. 61,86,420/- for delivered spices. The Corporate Debtor raised objections regarding the maintainability of the application, arguing that a proprietary concern cannot be sued in its own name and that there was a pre-existing dispute regarding the invoices. The application was initially considered by Bench-II of the Tribunal, which declared the Corporate Debtor ex parte and passed an order of admission. However, the ex parte order was later set aside, and the application was reconsidered by the current bench.

## Facts

Sanjay Stores, an operational creditor, filed an application against M/s. Cookme(Spice) Pvt. Ltd., a corporate debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, for default in payment of Rs. 61,86,420/-. Sanjay Stores claimed to have supplied and delivered goods to the corporate debtor based on invoices, believing that the corporate debtor would pay the amount demanded. The corporate debtor had made some payments via cheques. The corporate debtor received a demand notice under Section 8(1) of the Code but replied contending untenable contentions. The corporate debtor argued that the application was not maintainable because Sanjay Stores is a proprietary concern and lacks a legal entity. The corporate debtor also alleged a pre-existing dispute

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## Issues and analysis

### Issue 1: Whether the application filed by Sanjay Stores, a proprietary concern, is maintainable under …

**Ratio:** A proprietary concern has no legal existence and cannot sue in its own name. The Hon'ble

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**Reasoning:** The court reasoned that a proprietary concern is a fictitious name and does not have a

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**Interpretation:** Section 3(23) of the Insolvency & Bankruptcy Code defines 'person'. The

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**Application:** In this case, Sanjay Stores, a proprietary concern, filed the application.

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Sanjay S…
- **Respondents:** M/s. Cookme(Spice)…

## Timeline

- **2017-04-05 — Demand Notice…**: The Operational Creditor informed that the…
- **2017-07-07 — Corporate Debto…**: The Corporate Debtor admitted receipt of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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