The spin-Peierls instability in a spin- XY chain coupled to dispersionless phonons of frequency has been studied in the non-adiabatic limit. We have chosen the Lang-Firsov variational wavefunction for the phonon subsystem to obtain an effective spin Hamiltonian. The effective spin Hamiltonian is then solved in the framework of the mean-field approximation and bond operator technique. We observed two types of phase transitions, one is from the spin liquid phase to the dimerized phase and the other is from the dimerized phase to the antiferromagnetic phase as we vary the spin-phonon coupling from a very low value. The variation of lattice distortion, dimerized order parameter and energy gap with spin-phonon coupling parameter have also been investigated here.