No suit can be instituted by a sole proprietorship firm in its own name unless there are specific amendments stating that proprietorship sues thorough its proprietor – Neev Construction Vs. DCOM Systems Limited – NCLT

NCLT held that 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. Thus, 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.

No suit can be instituted by a sole proprietorship firm in its own name unless there are specific amendments stating that proprietorship sues thorough its proprietor – Neev Construction Vs. DCOM Systems Limited – NCLT Read Post »