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2020 (2) TMI 1457 - Tri - Insolvency and BankruptcyJurisdiction - power of proprietorship firm claiming to be operational creditor to file a suit - whether any proprietorship firm claiming to be operational creditor can file a proceeding/suit as it is not legal entity in the eye of law? - HELD THAT:- A proprietor ordinarily means a person who carries on trade or business in a name other than his name. The law on this aspect is fairly well settled. No suit can be instituted by a sole proprietorship firm in its own name unless there are specific amendments stating that proprietorship sues through its proprietor. It has been recognised in number of decisions that a proprietorship concern unlike a company or a partnership is not a legal entity and therefore any proceeding initiated by it would be a nullity. On this count alone the application is bad and is not maintainable. A proprietorship firm is not a legal entity - it is only the proprietor of the firm who is a legal entity and as such the petition should have been filed by the sole proprietor in his name on behalf of his sole proprietorship firm - It is also the duty of the Adjudicating Authority to dispose of cases "jus dicers", in accordance with law as it is and not "jus dare" in accordance with law as it should be. The application, so filed by the applicant is not maintainable and is bad in law as well as in facts - Application dismissed.
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