M/s Parus Traders filed a petition under Section 9 of the IBC, 2016, against M/s Vardaan Contracts Pvt. Ltd. The Tribunal had previously granted an opportunity to M/s Parus Traders to rectify defects in the petition. The defect pertained to the fact that M/s Parus Traders is a sole proprietorship. The Tribunal, upon reviewing Section 3(23) of the IBC, 2016, found that a sole proprietorship is not included in the definition of 'person' under the IBC. Consequently, the Tribunal could not consider the amended memo of parties. M/s Parus Traders then sought to withdraw the petition with the liberty to file a fresh petition after complying with the provisions of the IBC.

M/s Parus Traders filed a petition under Section 9 of the IBC, 2016, against M/s Vardaan Contracts Pvt. Ltd. The Tribunal had previously granted an opportunity to M/s Parus Traders to rectify defects in the petition. The defect pertained to the fact that M/s Parus Traders is a sole proprietorship. The Tribunal, upon reviewing Section 3(23) of the IBC, 2016, found that a sole proprietorship is not included in the definition of 'person' under the IBC. Consequently, the Tribunal could not consider the amended memo of parties. M/s Parus Traders then sought to withdraw the petition with the liberty to file a fresh petition after complying with the provisions of the IBC.