# In the matter of Classic Corrugations Pvt. Ltd.

> NCLT judgment dated 2024-05-16. Citation: TCN-2024-NCLT-01314. This case involves an application filed by M/s. Pack World, through its proprietor Kamal Saraf,…

- **Court:** NCLT
- **Order date:** 16 May 2024
- **Citation:** TCN-2024-NCLT-01314
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/classic-corrugations-pvt-ltd-e0fe38b8

## Summary

### Background

This case involves an application filed by M/s. Pack World, through its proprietor Kamal Saraf, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking the commencement of the Corporate Insolvency Resolution Process (CIRP) against M/s. Classic Corrugations Pvt. Ltd. The application was filed on 18.01.2024. The Corporate Debtor raised objections regarding the maintainability of the application, primarily arguing that a sole proprietorship concern like M/s. Pack World is not a 'person' under the IBC, 2016, and that the PAN number used in the application and invoices belonged to Kamal Kumar Saraf HUF, not the sole proprietorship.

## Facts

M/s. Pack World, through its proprietor Kamal Saraf, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s. Classic Corrugations Pvt. Ltd. The application was filed on 18.01.2024. The total claimed amount was Rs.1,82,46,707/-, including principal and interest. The last payment was received on 26.12.2022, which was considered the date of default. A demand notice was issued on 07.11.2023, but it was returned unclaimed. The Corporate Debtor raised objections, stating that M/s. Pack World, being a sole proprietorship, is not a 'person' under the IBC, 2016. They also pointed out that the PAN and GSTIN/UIN numbers on the invoices belonged to Kamal Kumar Saraf HUF, not M/s. Pack World. The invoices were raised by KK

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## Issues and analysis

### Issue 1: Whether the application filed by M/s. Pack World, a sole proprietorship, is maintainable under …

**Ratio:** A sole proprietorship concern is not a 'person' under Section 3(23) of the IBC, 2016, for

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**Reasoning:** The court relied on a previous order of the Tribunal, which stated that a proprietary

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**Interpretation:** Section 3(23) of the IBC defines 'person' and the interpretation is that a sole

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**Application:** Since M/s. Pack World is a sole proprietorship, it is not considered a 'person'

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Pack World…
- **Respondents:** Classic Corrugatio…
- **Advocates:** Dhiren…; Parth S…

## Timeline

- **2024-01-18 — Application…**: M/s. Pack World filed an application…
- **2022-12-26 — Date of D…**: The last payment was received on 26.12.2022,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(23) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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