# In the matter of Vardaan Contracts Pvt. Ltd. IB-565(ND)-2019

> NCLT judgment dated 2018-01-23. Citation: TCN-2018-NCLT-01906. The matter involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 23 Jan 2018
- **Citation:** TCN-2018-NCLT-01906
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vardaan-contracts-pvt-ltd-ib-565nd-2019-045000ea

## Summary

### Background

The matter involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioner, M/s Parus Traders, sought to initiate insolvency proceedings against M/s Vardaan Contracts Pvt. Ltd. An opportunity was previously granted to the petitioner to rectify defects in the petition, specifically concerning the petitioner's status as a sole proprietorship.

## Facts

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.

## Issues and analysis

### Issue 1: Whether a sole proprietorship falls within the definition of 'person' under Section 3(23) of the …

**Ratio:** The legal principle is that the definition of 'person' under Section 3(23) of the IBC,

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**Reasoning:** The Tribunal reasoned that Section 3(23) of the IBC, 2016, defines the term 'person'.

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**Interpretation:** Section 3(23) of the IBC, 2016, is interpreted to provide an exhaustive list of

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**Application:** In this case, the petitioner, M/s Parus Traders, is a sole proprietorship.

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## Parties

- **Judges:** R. VARADH…; DeepaKr…
- **Appellants:** M/s Parus T…
- **Respondents:** M/s Vardaan…

## Timeline

- **2019-03-08 — Previous Tribunal…**: The matter was posted before the Tribunal, and an opportunity was granted to the…
- **2019-03-19 — Order Del…**: The order was delivered dismissing the petition with liberty to file a fresh petition…

## 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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