Sole Proprietorship & Company Merger/Amalgamation is Prohibited

SVS Marketing Sanitaryware Private Limited (NCLT Delhi) NCLT Delhi held that an amalgamation of “a Sole Proprietorship Firm” with “a Company” is not permissible under the law. Thus, Merger and Amalgamation of sole proprietorship firm and company is not possible u/s 232 of Companies Act, 2013. Facts- M/s SVS Marketing Sanitaryware Private Limited (‘Applicant’/ ‘Operational Creditor’) has filed the present petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (‘IBC, 2016’) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority)...