Legal Person Juris II

7/25/2019 Legal Person Juris II

1/31

LEGAL PERSON: SCOPE AND LIMITATION

LEGAL PERSON: SCOPE AND LIMITATION

TABLE OF CONTENTS

1.CONCEPT OF

PERSON1

1.1 Introduction.

......1

1.2 Historica !ac"#round o$ t%& Conc&'t o$ (P&rson).

1

1.* D&$inition o$

(P&rson).2

1.+ M&anin# o$ Natura P&rson.

..*

1., M&anin# o$ (LaP&rson)*

1.- Natura P&rson is/a/is La

P&rson.+

Natural Person and legal

Person.4

2. LAW OF

STATUS...5

2.1 Legal Statu !" U#$!%#

Pe%!#.5

2.1.1 Indian

Position.5
http://law-projects.blogspot.com/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.com/2015/02/legal-person-scope-and-limitation.html


2/31

2.2 La Status o$ D&ad

Man-

2.2.1 Indian Position.

...0

2.* La Status o$ Lo&r

Anias3

2.3.1 Ancient

Law .3

2.3.2 Modern Law..

9

*. CORPORATE LEGAL

PERSONALIT&...11

*.1 Cor'orat& So&.

.12

*.2 Cor'orat& A##rat&...

1,

*.* T%&ori&s o$ Cor'orat& P&rsonait4...

..10

3.3.1 The iction theor!...

..1"

3.3.2 The #oncession theor!...

.10

3.3.3 The Pur$ose theor!....

.10

3.3.4 The %!&'olist theor!..

..1(

3.3.5 The )ealist theor!...

13

*.+ Li$tin# or Pi&rcin# t%& Cor'orat&

5&i..13


3/31

'. LEGAL PERSONALIT& IN

INDIA...21

+.1 6arta.

21

+.2 Hindu Idos...

21

+.* T%& 7nion o$ India and t%& Stat&

Go&rn&nts...22

+.+ Partn&rs%i' 8ir and

Co'an4....2*

+., Ot%&r La

P&rsonaiti&s2*

5.

CONCLUSION

..25

,.1 Liitations to La

P&rsonait4.2,

,.2 Concusion

2-

B($l(!g%a)*+

...2,


4/31


5/31

C-APTER 1

CONCEPT OF PERSON

1.1 I#t%!/u0t(!#

T%& t&r ('&rson) is d&ri&d $ro Latin ord ('&rsona) %ic% &ans a as" orn 94 actors

'a4in# di$$&r&nt ro&s in a draa. In od&rn da4s it %as 9&&n us&d in a s&ns& o$ a iin# '&rson

ca'a9& o$ %ain# ri#%ts and duti&s. No it %as 9&&n us&d in di$$&r&nt s&ns&s in di$$&r&nt

disci'in&s. In t%& '%ioso'%ica and ora s&ns& t%& t&r %as 9&&n us&d to &an t%& rationa

uait4 o$ %uan 9&in#. In a it %as a id& &anin#. It &ans not on4 %uan 9&in#s 9ut aso

associations as &. La '&rsoni$i&s so& r&a t%in# and tr&ats it as a a '&rson. T%is

'&rsoni$ication 9ot% t%&or&tica4 and 'ractica4 cari$i&s t%ou#%t and &;'r&ssion. T%&r& ar&

%uan 9&in#s %o ar& not '&rsons in a s&ns& suc% as outas and sa&s co'ani&s>

trad& unions? institutions i"& uni&rsiti&s> %os'itas ar& &;a'&s o$ arti$icia '&rsonait4

r&co#ni@&d 94 a in t%& od&rn a#&. H&nc&> t%& '&rson is an i'ortant cator4 o$ conc&'t in

a t%&or4> 'articuar4 9usin&ss and cor'orat& as %a& &;t&nsi&4 us&d t%& conc&'t o$

'&rson $or 'rot&ction as & as i'osin# t%& ia9iit4.

1.2 -(t!%(0al Ba0g%!u#/ !" t*e C!#0e)t !" Pe%!#3

T%& t&r ('&rson) and ('&rsonait4) %as a %istorica &oution. Roan a> Gr&&" a and Hindu

a> %as us&d t%& conc&'t too. In Roan a> t%& t&r %ad a s'&ciai@&d &anin#> and it as

s4non4ous it% (ca'ut) &ans status. T%us> a sa& %ad an i'&r$&ct '&rsona. In at&r '&riod it

as d&notin# as a 9&in# or an &ntit4 ca'a9& o$ sustainin# a ri#%ts and duti&s. In anci&nt

Roan Soci&t4> t%&r& as no 'ro9& o$ '&rsonait4 as t%& ($ai4) as t%& 9asic unit o$ t%&

soci&t4 and not t%& indiidua. T%& $ai4 consist&d o$ a nu9&r o$ indiiduas> 9ut a t%&

'o&rs &r& conc&ntrat&d it% ($ater *a&ilias) &ans t%& %&ad o$ t%& $ai4. I$ a %&ad o$ t%&

$ai4 di&s> and t%&r& is an int&ra 9&t&&n %is d&at% and d&oution o$ 'ro'&rt4 on t%& %&ir %o

acc&'t&d in%&ritanc&> t%& 'ro'&rt4 i &st in a '&rson durin# t%& int&ra. T%is as

ca&d hereditas +acens%ic% as d&&o'&d 94 t%& Roans.1BT%& hereditas +acensis

consid&r&d 94 so& sc%oars as siiar to a '&rsonait4.,ereditas +acens&ans t%&

in%&ritanc& durin# t%& int&ra 9&t&&n d&at% o$ t%& anc&stor and t%& acc&'tanc& o$ t%&

in%&ritanc& 94 t%& %&ir. So& sc%oars ar& not r&ad4 to a#r&& it% t%& i&s t%at it %as so&
http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn1http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn1


6/31

conn&ction it% 'r&s&nt doctrin& o$ a '&rsonait4> &&n i$ it is t%&r&> it a4 9& in a &r4

iit&d s&ns&. T%&r& as a 'roision in Roan a t%at ot%&r institutions or #rou' %o %ad

c&rtain ri#%ts and duti&s &r& ca'a9& to &;&rcis& t%&ir a ri#%ts t%rou#% a r&'r&s&ntati&.

7nd&r Gr&&" a> an ania or tr&&s &r& tri&d in court $or %ar or d&at% don& to a %uan 9&in#.

It can 9& said on t%& 9asis o$ t%is 'ractic& t%at t%&s& o9&cts &r& su9&ct to duti&s &&n t%ou#%

t%&4 a4 not 'oss&ss&s ri#%ts. T%is is an &&&nt o$ t%& attri9ution o$ '&rsonait4.

7nd&r &ar4 En#is% a> t%&r& ar& so& incid&nc&s in it %ad $ound t%at an ania or tr&ss or

inaniat& o9&cts %ad 9&&n tri&d in Court und&r a. T%& tr&&s and anias &r& su9&ct to dut4

9ut not ri#%ts. A$t&r 13+-> t%is s4st& %as odi$i&d and it as ad& c&ar t%at anias or tr&ss&s

ar& ca'a9& o$ 'oss&ssin# ri#%ts and duti&s? t%&r&$or&> t%&r& is no u&stion o$ '&rsonait4.2B

1.4 De"(#(t(!# !" Pe%!#3

T%& t&r ('&rson) is d&ri&d $ro t%& Latin t&r (P&rsona) %ic% &ans t%os& %o ar&

r&co#ni@&d 94 a as 9&in# ca'a9& o$ %ain# a ri#%ts and 9&in# 9ound 94 a duti&s. It

&ans 9ot%/ a %uan 9&in#> a 9od4 o$ '&rsons or a cor'oration or ot%&r a &ntit4 t%at is

r&co#ni@&d 94 a as t%& su9&ct o$ ri#%ts and duti&s.*B

Sain#4 %as d&$in&d '&rson as t%& su9&ct or 9&ar&r o$ ri#%t. !ut Hoand %as criticis&d t%is

d&$inition on t%& #round t%at '&rsons ar& not su9&ct to ri#%t aon& 9ut aso duti&s. H& sa4s: t%&

ri#%t not on4 r&sid&s in> 9ut is aso aaia9& a#ainst '&rsons. T%&r& ar& '&rsons o$ incid&nc& as

& as o$ in%&r&nc&.+B

6&son r&&ct&d t%& d&$inition o$ '&rsonait4 as an &ntit4 %ic% %as ri#%ts and duti&s. H& %as aso

r&&ct&d t%& distinction 9&t&&n %uan 9&in#s as natura '&rsons and uristic '&rsons. H& sa4s

t%& totait4 o$ ri#%ts and duti&s is t%& '&rsonait4? t%&r& is no &ntit4 distinct $ro t%&. Ho&&r>

6&son)s i& %as 9&&n criticis&d $or t%& r&ason t%at in a natura '&rson is di$$&r&nt $ro a

'&rsons %o ar& aso ca'a9& o$ %ain# ri#%ts and duti&s and constitut& a distinct &ntit4.

Saond)s d&$inition s&&s to 9& or& corr&ct t%an t%& &ari&r d&$initions. In t%& ords o$

Saond: So $ar as a t%&or4 is conc&rn&d> a '&rson is an4 9&in# %o t%& a rards as

ca'a9& o$ ri#%ts and duti&s. An4 9&in# t%at is so ca'a9& is a '&rson> %&t%&r a %uan 9&in# or

not> and no 9&in# t%at is not so ca'a9& is a '&rson &&n t%ou#% %& 9& a an.,B

Saond $urt%&r &;'ains t%at t%& &;t&nsion o$ t%& conc&'tion o$ '&rsonait4 9&4ond t%& cass o$

%uan 9&in#s is on& o$ t%& ost not&ort%4 ac%i&&&nts o$ t%& a ia#ination.
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn2http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn3https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn4https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn5https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn2http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn3https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn4https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn5


7/31

P&rsons can 9& cassi$i&d into na&4> %& ust 9& a iin# %uan

9&in# and %& ust 9& r&co#ni@&d 94 t%& stat& as '&rson so %& ust not 9& a sa& in t%& a9sout&

contro o$ %is ast&r or ot%&ris& cii4 d&ad as a on" %o %as r&nounc&d t%& ord.

1.5 Mea#(#g !" Legal Pe%!#3

T%& ord '&rson is d&ri&d $ro t%& Latin ord ('&rsona). 7s&d in t%& cont&;t o$

a>$ersona ca& to si#ni$4 t%& su9&ct o$ a ri#%ts and duti&s. It ca& to d&not& not an

indiidua iti#ant as a %uan 9&in#> 9ut an49od4 or an4t%in# '&ritt&d to ass&rt a cais or

su9&ct&d to a duti&s. 8ro t%& a '&rs'&cti&> t%& as" o$ '&rsonait4 do&s not> t%&r&$or&>

n&c&ssari4 %a& to 9& orn 94 %uan 9&in#s.

La '&rsonait4 a4 9& said to r&$&r to t%& 'articuar d&ic& 94 %ic% a cr&at&s> or

r&co#ni@&s units to %ic% it ascri9&s c&rtain 'o&rs and ca'aciti&s. P&rsons ar& t%& su9stanc&s o$

%ic% t%& ri#%ts and duti&s ar& t%& attri9ut&s. It is in t%is r&s'&ct t%at '&rsons 'oss&ss udicia

si#ni$icanc&.

1. Natu%al Pe%!# 6(7a 6( Legal Pe%!#

La '&rsons ar& t%os& %ic% ar& t%& cr&ations o$ a &.#. t%& co'an4> cor'orations> trad&

unions> &tc. Saond sa4s a '&rson is an4 su9&ct att&r ot%&r t%an %uan 9&in#s to %ic%

t%& a attri9ut&s a '&rsonait4. G&n&ra4> a '&rsonait4 is #rant&d 94 a to a %uan

9&in#s> a '&rsonait4 9&in# an arti$icia cr&ation o$ t%& a a4 9& con$&rr&d on &ntiti&s ot%&rt%an indiidua %uan 9&in#s. T%& a> in cr&atin# a '&rsons> aa4s do&s so 94 '&rsoni$4in#

so& r&a t%in#. -B8ooin# ar& t%& di$$&r&nc&s 9&t&&n natura '&rson and a '&rson:

Natural Person

1. A natura '&rson is a %uan 9&in# and is a r&a and iin# '&rson.

2. H& %as c%aract&ristics o$ t%& 'o&r o$ t%ou#%t s'&&c% and c%oic&.
http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn6http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn6http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.html


8/31

*. 7n9orn> d&ad an and o&r anias ar& not consid&r&d as natura '&rsons.

+. T%& a4an do&s not r&co#ni@& idiot> co'an4> cor'oration> ido &tc. as '&rsons.

,. H& is aso a a '&rson and accordin#4 '&r$or t%&ir $unctions

-. Natura '&rson can i& $or a iit&d '&riod. i.&. %& cannot i& or& t%an 1FF 4&ars.

Legal Person

1. La '&rson is 9&in#> r&a or ia#inar4 %o t%& a rards as ca'a9& o$ ri#%ts or duti&s.

2. La '&rsons ar& aso t&r&d $ictitious> uristic> arti$icia or ora.

*. In a> idiots> d&ad &n> un9orn '&rsons> cor'orations> co'ani&s> idos> &tc. ar& tr&at&d as

a '&rsons.

+. T%& a '&rsons '&r$or t%&ir $unctions t%rou#% natura '&rsons on4.

,. T%&r& ar& di$$&r&nt ari&ti&s o$ a '&rsons> i@. Cor'orations> Co'ani&s> 7ni&rsiti&s>

Pr&sid&nt> Soci&ti&s> Munici'aiti&s> Gra 'anc%a4ats> &tc.

-. La '&rson can i& or& t%an 1FF 4&ars. E;a'&: %ic% as cr&at&d so& t%r&& %undr&d 4&ars a#o> and sti it is continuin#. ai&ns> d&c&as&d '&rsons> o&r anias

&tc.

T%&s& ar& '&rsons %o do not &no4 t%& status o$ a '&rsonait4 9ut t%& soci&t4 %as so&

duti&s toards t%&.

2.1 Legal Statu !" U#$!%# Pe%!#

A c%id in ot%&r)s o9 is 94 a $iction rard&d as ar&ad4 9orn. I$ %& is 9orn ai&> %& i

%a& a a status. T%ou#% a nora4 ta"&s co#ni@anc& o$ iin# %uan 9&in#s 4&t t%& a

a"&s an &;c&'tion in cas& o$ an in$ant in-entre sa &ere.
http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn7http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn7http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.html


9/31

7nd&r En#is% La> a c%id in t%& o9 o$ t%& ot%&r is tr&at&d as in &;ist&nc& and 'ro'&rt4 can

9& &st&d in its na& 3B. Artic& F- o$ t%& 8r&nc% Cii Cod& '&rits t%& trans$&r o$ 'ro'&rt4 in

$aour o$ an un9orn '&rson. !ut> accordin# to Mo%a&dan La a #i$t to a '&rson not in

&;ist&nc&Bis oid. A c%id in t%& o9 o$ t%& ot%&r is consid&r&d to 9& a '&rson 9ot% und&r t%&

a o$ cri&s and a o$ torts.

2.1.1 Indian Position / 7nd&r s&ction 1* o$ t%& Trans$&r o$ Pro'&rt4 Act> 'ro'&rt4 can 9&

trans$&rr&d $or t%& 9&n&$it o$ an un9orn '&rson 94 a4 o$ trust. Siiar4 s&ction 11+ o$ t%&

Indian Succ&ssion Act> 12, 'roid&s $or t%& cr&ation o$ 'rior int&r&st 9&$or& t%& un9orn '&rson

a4 9& ad& t%& on&r o$ 'ro'&rt4 cor'or&a or incor'or&a> 9ut no 'ro'&rt4 i 9& d&&&d to

9& &st&d in t%& un9orn '&rson un&ss and unti %& is 9orn ai&. In Hindu La aso a c%id in t%&

o9 o$ t%& ot%&r is d&&&d to 9& in &;ist&nc& $or c&rtain 'ur'os&s. 7nd&r Mita"s%ara a>

suc% a c%id %as int&r&st in co'arc&nar4 'ro'&rt4.1FB

7nd&r s&ction *1, o$ t%& Indian P&na Cod&> t%& in$iction o$ 'r& nata inur4 on a c%id> %ic% is

ca'a9& o$ 9&in# 9orn ai& and %ic% 'r&&nts it $ro 9&in# so coud aount to an o$$&nc& o$

c%id d&struction. S&ction +1- o$ Criina Proc&dur& Cod& 'roid&s t%at i$ a oan s&nt&nc&d to

d&at% is $ound to 9& 'rnant> t%& Hi#% Court s%a ord&r t%& &;&cution o$ t%& s&nt&nc& to 9&

'ost'on&d> and a4 i$ it t%in"s $it> cout& t%& s&nt&nc& to i'rison&nt $or i$&. It %as 9&&n

%&d t%at in a Canadian cas& 11Bt%at a c%id coud succ&&d in tort a$t&r it as 9orn on account o$ a

d&$orit4 %ic% as %&d to %a& 9&&n caus&d 94 a ni#&nt 'r& nata inur4 to ot%&r.

T%ou#% t%&r& is no Indian cas& on t%is 'oint 9ut it is &;'&ct&d t%at a i9&ra i& oud 9& ta"&n

on t%is in& and a c%id oud 9& #&ttin# t%& ri#%t to su&. In an A$rican cas& 12Bit as %&d t%at a

c%id can succ&&d in tort a$t&r it is 9orn on account o$ a d&$orit4 caus&d 94 'r& inur4 to %is

ot%&r.

In India as & in En#and> und&r t%& a o$ tort an in$ant cannot aintain an action $or inuri&s

sustain&d %i& on-entre sa &ere.1*BHo&&r> in En#and daa#&s can 9& r&co&r&d und&r 8ata

Accid&nts Act> 13+- $or t%& 9&n&$it o$ a 'ost%uous c%id. In s%ort> it can 9& concud&d t%at an

un9orn '&rson is &ndo&d it% a '&rsonait4 $or c&rtain 'ur'os&s.

2.2 Legal Statu !" Dea/ Ma#

D&ad an is not a a '&rson. As soon as a an di&s %& c&as&s to %a& a a '&rsonait4. D&ad

&n do not r&ain as 9&ar&rs o$ ri#%ts and duti&s it is said t%at t%&4 %a& aid don t%&ir ri#%ts
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn8https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn9https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn10https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn10https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn11https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn12https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn13http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn8https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn9https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn10https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn11https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn12https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn13http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.html


10/31

and duti&s it% t%&ir d&at%.Action $ersonalis &oritur cu& $ersona/ action di&s it% t%& d&at% o$

a an. it% d&at% '&rsonait4 co&s to an &nd. A d&ad an c&as&s to %a& an4 a ri#%t or

9ound 94 an4 a dut4. J&t> a to so& &;t&nt> r&co#nis&s and ta"&s account o$ t%& d&sir&s or

int&ntions o$ a d&c&as&d '&rson. La &nsur&s a d&c&nt 9uria> it r&s'&cts t%& is%&s o$ t%&

d&c&as&d rardin# t%& dis'osa o$ %is 'ro'&rt4> 'rot&cts %is r&'utation and in so& cas&s

continu&s '&ndin# action institut&d 94 or a#ainst a '&rson %o is no d&c&as&d. 1+B

2.2.1 Indian Position/ As $ar as a d&ad an)s 9od4 is conc&rn&d criina a s&cur&s a d&c&nt

9uria to a d&ad &n. S&ction 20 o$ Indian P&na Cod& aso 'roid&s 'unis%&nt $or

coittin# cri& %ic% aounts to indi#nit4 to an4 %uan cor's&. 1,BT%& criina a 'roid&s

t%at an4 i'utation a#anist a d&c&as&d '&rson> i$ it %ars t%& r&'utation o$ t%at '&rson i$ iin#

and is int&nd&d to %urt t%& $&&in# o$ %is $ai4 or ot%&r n&ar r&ati&s> s%a 9& o$$&nc& o$

d&$aation und&r s&c + o$ t%& Indian P&na Cod&.

T%& Su'r&& Court in t%& cas& o$Ashra! Adhiar A'hi!an - /nion o* India1-B%as %&d t%at &&n

a %o&&ss '&rson %&n $ound d&ad on t%& road> %as a ri#%t o$ a d&c&nt 9uria or cr&ation as

'&r %is r&i#ious $ait%.

In En#is% La10Bas & as in Musi La t%& ioation o$ a #ra& is a criina o$$&nc&. As

rards r&'utation o$ a d&ad an> it is to so& &;t&nt 'rot&ct&d 94 criina a. 13B7nd&r Roan

a an4 insut to t%& 9od4 o$ t%& d&c&as&d at t%& tiin# o$ $un&ra> #a& t%& d&c&as&d)s %&ir a

ri#%t to su& $or t%& inur4 as it is tr&at&d as insut to t%& %&ir. 7nd&r t%& a o$ 8ranc& t%& r&ati&

o$ t%& d&$a&d d&c&as&d can succ&ss$u4 su& $or daa#&s> i$ t%&4 can 'ro& t%at so& inur4 it

suit&d $ro t%& d&$aation. T%us> it is not t%& ri#%ts and t%& %&nc& t%& '&rsonait4 o$ t%&

d&c&as&d t%at t%& a r&co#nis&s and 'rot&cts 9ut it is t%& ri#%t and int&r&st o$ iin# d&sc&ndants

t%at it is 'rot&ct&d.

So $ar trust is conc&rn&d En#is% La 'roid&s t%& ru& t%at '&ran&nt trust $or t%& aint&nanc&

o$ a d&ad an)s to9 is ia and oid and 'ro'&rt4 cannot 9& ti&d u' $or t%is 'ur'os&. T%is

ru& %as 9&&n aid don in t%& &adin# cas& o$ 0illia&s -. 0illia&s1B%&r& it as said t%at a

cor's& is t%& 'ro'&rt4 o$ no on&. It cannot 9& dis'os&d o$ 94 i or an4 ot%&r instru&nt. It as

$urt%&r %&d in t%is cas& t%at &&n t&'orar4 trusts ar& n&it%&r aid nor &n$orc&a9&. Its

$u$i&nt is a$u and not o9i#ator4. It as %&d inMathii han -. eda Leiwai2FBt%at ors%i'

at t%& to9 o$ a '&rson is c%arita9& and r&i#ious 'ur'os&s aon#st Musis/ %&nc& trust is

'ossi9&. In %araswati -. )a+a o$al21Bit as %&d t%at ors%i' at t%& Saad%i o$ a '&rson>
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn14https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn15https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn16https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn16https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn17https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn18https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn18https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn19https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn20https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn21https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn14https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn15https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn16https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn17https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn18https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn19https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn20https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn21


11/31

&;c&'t in a counit4 in %ic% t%&r& is a id&s'r&ad 'ractic& o$ raisin# to9s and ors%i''in#

t%&r& at> is not a r&i#ious or c%arita9& 'ur'os& accordin# to Hindu La and oud not constitut&

a aid trust or &ndo&nt.A22B

Rardin# t%& 'ro'&rt4 o$ t%& d&ad an t%& a carri&s out t%& is%&s o$ t%& d&c&as&d &;a'&> a

i ad& 94 %i rardin# t%& dis'osa o$ %is 'ro'&rt4. T%is is don& to 'rot&ct t%& int&r&st o$

t%os& %o ar& iin# and %o oud #&t t%& 9&n&$it und&r t%& i. T%is is su9&ct to t%& ru&

a#ainst '&r'&tuit4 as & as a o$ t&sta&ntar4 succ&ssion. Indian Trans$&r o$ Pro'&rt4 Act>

s&ction 1+ incor'orat&s t%& ru& a#ainst '&r'&tuiti&s> %ic% $or9ids trans$&r o$ 'ro'&rt4 $or an

ind&$init& ti& t%&r&94 a"in# it ai&na9&. S&ction 1+ o$ t%& TPA r&strains t%& 'o&r o$ cr&atin#

$utur& int&r&sts 94 'roidin# in t%& ru& a#ainst '&r'&tuiti&s t%at suc% int&r&st ust aris& it%in

c&rtain iits. T%& ru& o$ '&r'&tuit4 oo"s to t%& dat& at %ic% t%& contin#&nt int&r&st i &st> i$

it &sts at a> and %od it to 9& oid as '&r'&tuit4 i$ t%is dat& is too r&ot&.

Siiar4> s&ction 1 and + o$ t%& Indian Succ&ssion Act> 12, $or9ids t%& cr&ation o$ a i

%&r&94 &stin# o$ 'ro'&rt4 is 'ost'on&d 9&4ond t%& i$&ti& o$ on& or or& '&rsons and t%&

inorit4 '&riod o$ t%& un9orn '&rson.

2.4 Legal Statu !" L!8e% A#(9al

La do&s not r&co#nis& 9&asts or o&r anias as '&rsons 9&caus& t%&4 ar& &r&4 t%in#s and

%a& no natura or a ri#%ts. Saond rards t%& &r& o9&cts o$ a ri#%ts and duti&s 9ut

n&&r su9&cts o$ t%&.2*BAnias ar& not ca'a9& o$ %ain# ri#%ts and duti&s and %&nc& t%&4 ar&

not a '&rsons.

2.3.1 Ancient Law/ Ho&&r> in anci&nt ti&s anias &r& rard&d as %ain# a ri#%ts and

9&in# 9ound 94 a duti&s. 7nd&r t%& anci&nt K&is% Cod& (i$ an o; #or& t%&n t%& o; as to 9& ston&d and its $&s% as not to

9& &at&n. T%&r& ar& an4 &;a'&s in anci&nt H&9r& Cod&s %&r& coc"> 9us> do#s and &&n

t%& trun" o$ tr&&s %ic% %ad $a&n on %uan 9&in#s and "i&d %i &r& tri&d $or %oicid&.)2+B

T%&r& ar& siiar instanc&s in India as &. In nu9&r o$ cas&s $ound t%at> anias &r& su&d incourts in anci&nt India. T%&r& is 'o'uar stor4 a9out t%& Mu#%a E'&ror K&%an#ir in %ic% t%&

9uoc" as 'r&s&nt&d 9&$or& t%& E'&ror. Ho&&r t%&s& instanc&s ar& &r&4 o$ %istorica

int&r&st and %a& no r&&anc& in od&rn a.
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn22http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn23http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn24https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn22http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn23http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn24


12/31

2.3.2 Modern Law Mod&rn La do&s not r&co#nis& anias as 9&ar&r o$ ri#%ts and duti&s. La

is ad& $or %uan 9&in#s and a t%in#s incudin# anias ar& $or &n. No ania can 9& t%&

on&r o$ 'ro'&rt4 $ro a '&rson to an ania. Anias ar& &r&4 t%& o9&ct o$ trans$&r and ar& a

"ind o$ 'ro'&rt4> %ic% ar& on&d and 'oss&ss&d 94 '&rsons. O$ cours&> $or t%& ron#s don& 94

anias t%& ast&r is %&d ia9&.2,BT%is dut4 or ia9iit4 o$ t%& ast&r aris&s du& to 'u9ic 'oic4

and 'u9ic &;'&di&nc4. T%& ia9iit4 o$ t%& ast&r is strict and not a icarious ia9iit4. T%&

ania coud 9& said to %a& a a '&rsonait4 on4 i$ t%& ia9iit4 o$ t%& ast&r is consid&r&d

icarious.

In c&rtain cas&s> t%& a assu&s t%& ia9iit4 o$ t%& ast&r $or an ania as dir&ct %i& in ot%&r

cas&s> ia9iit4 is not dir&ct. T%us> $or "&&'in# anias t%at ar& not o$ dan#&rous natur& t%& ast&r

is not ia9& $or t%& daa#& it a4 do> un&ss %& "nos t%at it as dan#&rous. T%& "no&d#& o$

t%& d&$&ndant ust 9& s%on as to t%&ir 'ro'&nsit4 to do t%& act in u&stion. Ho&&r> i$ t%&

ania is o$ $&rocious natur&> t%& ast&r is r&s'onsi9& $or t%& ron# i$ %& s%os ni#&nc& in

%andin# it. T%& on&r o$ anias o$ t%is cass is aso r&s'onsi9& $or t%&ir tr&s'ass&s and

cons&u&nt daa#&. I$ a an)s catt&> s%&&' or 'outr4> stra4 into %is n&i#%9our)s and or #ard&n>

and do suc% daa#& as i#%t ordinari4 9& &;'&ct&d to 9& don& 94 t%in#s o$ t%at sort> t%& on&r

is ia9& to %is n&i#%9our $or t%& cons&u&nc&s. A c%arita9& trust can 9& cr&at&d $or t%&

aint&nanc& o$ stra4 catt&> 9ro"&n %ors&s and ot%&r anias. Suc% a trust is cr&at&d it% a i&

to 'root& 'u9ic &$ar& and adanc&&nt o$ r&i#ion. Ho&&r> i$ t%& c%arita9& trust is cr&at&d

on4 $or t%& 9&n&$it o$ a sin#& %ors& or a do#> it cannot 9& rard&d as 'u9ic c%arita9& trust $or

instanc& in)e ean #oo$er ean -. %te-ens2-Ba t&st o$ c%ar#&d %is 'ro'&rt4 it% t%& 'a4&nt o$

annua su o$ trust&&s $or t%& aint&nanc& o$ %is %ors&s and do#s. T%& court %&d t%at it is not

aid trust &n$orc&a9& in an4 a4 on 9&%a$ o$ t%&s& anias. It as o9s&r&d t%at t%& trust&&

couds'&nd t%& on&4 i$ t%&4 '&as&d in t%& ann&r d&sir&d 94 t%& t&stator. !ut i$ t%&4 did not

s'&nd t%& on&4 it oud not 9& consid&r&d a 9r&ac% o$ trust and in suc% a situation t%& on&4

so s'&nt i 9& o$ t%& r&'r&s&ntati&s o$ t%& t&stator.

Siiar4> a 9&u&st $or t%& aint&nanc& o$ t%& t&stator)s $aourit& 9ac" ar& 20Ba 9&u&st o$ an

annua su $or t%& aint&nanc& o$ t&stator)s %ors&s and %ounds $or a '&riod o$ ,F 4&ars i$ na4

t%os& anias s%oud so on# i& a trust $or t%& 9&n&$it o$ a 'arrot durin# t%& i$& o$ to trust&&s

and surior o$ t%& %a& a 9&&n %&d aid.
http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn25https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn26https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn27http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn25https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn26https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn27


13/31

C-APTER7 4

CORPORATE LEGAL PERSONALIT&

La '&rsonait4 is a $ictitious attri9ution o$ '&rsonait4 94 a> a sort o$ '&rsoni$ication o$ a.

La '&rsons 9&in# arti$icia cr&ations o$ a can 9& o$ as an4 "inds as t%& a d&is&s.

Contin&nta uris'rud&nc& r&co#ni@&s t%r&& "inds o$ a '&rsons> na&4:


14/31

i$ it '&as&s> rard a c%urc%> a %os'ita or a uni&rsit4 or a i9rar4 as a '&rson. T%at is to

sa4 it a4 attri9ut& '&rsonait4 not to an4 #rou' o$ '&rsons conn&ct&d it% t%& institution> 9ut to

t%& institution its&$. In t%& tradition and 'ractic& o$ En#is% La> a '&rsonait4 is not iit&d

94 an4 o#ica n&c&ssit4 or ind&&d 94 an4 o9ious r&uir&&nt o$ &;'&di&nc4 to t%& incor'orat&d

9odi&s o$ indiidua '&rsons. In India> institutions i"& uni&rsit4>2Bt&'&>*FB'u9ic aut%oriti&s>

&tc. ar& consid&r&d as a '&rsons. 7nd&r Indian a> trad& unions and $ri&nd4 soci&ti&s ar&

a &ntiti&s. T%&4 on 'ro'&rti&s and suits can 9& 9rou#%t in t%&ir na&s t%ou#% not rard&d

as cor'orations.

or

a trust &stat&> or t%& 'ro'&rt4 or a d&ad an or o$ a 9an"ru't.*1B

4.1 C!%)!%ate S!le

#or$oration sole is a legal entit! consisting o* a sole incor$orated o**ice8 occu$ied '! a single

&anwo&en and it has legal continuit!.[32]

A cor$oration sole consists o* one $erson onl!8 and the successors o* that $erson in so&e

$articular station or o**ice. The ing o* :ngland is a cor$oration sole; so is a 'isho$; and in the

#hurch o* :ngland e-er! $arson and -icar is8 in -iew o* the law8 a cor$oration sole.[33]

To und&rstand t%& conc&'t o$ cor'oration so& on& n&&ds to d&a it% to 4&t siiar

u&stions:8irst> it as n&c&ssar4 to disco&r %at a''ication t%& conc&'t %ad> %ic% ino&dund&rstandin# %4 it %ad co& into 9&in# in t%& rst 'ac&? 9ut S&cond> it as n&c&ssar4 to as"

%at $ors o$ a t%& us& o$ t%is conc&'t %ad &;cud&d. La> in ruin# so& t%in#s in> is aa4s

ruin# so& t%in#s out


15/31

'articuar 'ractica 'ro9& rat%&r t%an d&duc&d $ro a s&t o$ #&n&ra uristic 'r&c&'ts> coud not

9& dou9t&d. Nor coud it 9& dou9t&d t%at t%& a''ication o$ t%is contrianc& as rat%&r iit&d.

!ut %at as sur'risin# as %o uc%> non&t%&&ss> as ru&d in> and %o uc% ru&d out.

T%& ori#ins o$ t%& cor'oration so& Maitand trac&d to a 'articuar &ra and a 'articuar 'ro9&.

T%& &ra as t%& si;t&&nt% c&ntur4> and coincid&s it% %at Maitand cas (a disintratin#

'roc&ss . . . it%in t%& &cc&siastica #rou's)> %&n &ndurin# cor'orat& &ntiti&s t%& 'articuar 'ro9&

as not on& o$ #rou's 9ut o$ indiiduas? or rat%&r> it as a 'ro9& o$ on& indiidua> t%& 'aris%

'arson> and o$ on& t%in#> t%& 'aris% c%urc%. as t%is t%in#> a c%urc%> 'ausi94 &it%&r t%& su9&ct

or t%& o9&ct o$ 'ro'&rt4 ri#%ts T%& s&cond u&stion o$ o9&ctiit4 as t%& or& 'r&ssin#

on&> as it conc&rn&d so&t%in# t%at as unaoida9& as a caus& o$ a dis'ut&> na&4 (an

&;'oita9& and &no4a9& ass o$ &at%).

!ut it coud not 9& addr&ss&d it%out consid&rin# t%& ot%&r u&stion> and t%& 'ossi9iit4 t%at t%&

on&rs%i' o$ t%is &at% do&s not attac% to an4 na&d indiiduas 9ut to t%& c%urc% its&$. T%&

a coud 'ro9a94 %a& co'&d it% t%is outco&> 9ut t%& na&d indiiduas ino&d> incudin#

not on4 t%& 'arson 9ut aso t%& 'atron %o noinat&s %i and t%& 9is%o' %o a''oints %i>

coud not. It 'ac&d &;'oitation and &no4&nt at too #r&at a r&o&. Inst&ad> an id&a t%at %ad

9&&n cr&&'in# toards t%& i#%t durin# t%& $t&&nt% c&ntur4 as na4 'r&ss&d into s&ric&> and

t%& 'arson as d&&&d t%& on&r> not in %is on ri#%t> 9ut as a "ind o$ cor'oration> ca&d a

(cor'oration so&).*+B

%at t%is &ant> in 'ractic&> as t%at t%& 'arson coud &no4 and &;'oit %at &at% t%&r& as

9ut coud not ai&nat& it. !ut %at it &ant in t%&or4 as t%at t%& c%urc% 9&on#&d to so&t%in#

t%at as 9ot% or& t%an t%& 'arson 9ut so&%at &ss t%an a tru& cor'oration. T%at it as or&

t%an t%& 'arson as s%on 94 t%& $act t%at $u on&rs%i'> to do it% as %& '&as&d> did not

9&on# to an4 on& 'arson at an4 #i&n ti&? t%at it as &ss t%an a cor'oration as s%on 94 t%&

$act t%at %&n t%& 'arson di&d> on&rs%i' did not r&sid& in an49od4 or an4t%in# &s&> 9ut &nt

into a9&4anc&. Ess&ntia4> t%& cor'oration so& as a nati& id&a. It 'ac&d utiat& on&rs%i'

9&4ond an4on&. It as a (su9&ct &ss ri#%t> a $&& si'& in t%& couds). It as> in s%ort> an

a9surdit4> %ic% s&r&d t%& 'ractica 'ur'os& o$ an4 a9surditi&s 94 standin# in $or an ans&r to

a u&stion $or %ic% no satis$actor4 ans&r as $ort%coin#.*,B
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn34https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn35https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn35https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn34https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn35


16/31

T%& id&a o$ t%& cor'oration so& #a& a ctions a 9ad na&? t%& cor'oration so& as a

$rioous id&a> %ic% i'i&d t%at t%& '&rsonication o$ t%in#s ot%&r t%an natura '&rsons as

so&%o a &ss t%an s&rious att&r. It as not so uc% t%at a9surdit4 9r&d a9surdit4> 9ut t%at it

accustos us to a9surdit4> and a t%at t%at &ntais. 8ina4> %o&&r> t%& id&a o$ t%& cor'oration

so& as s&rious 9&caus& it &ncoura#&d so&t%in# &ss t%an s&riousn&ss a9out anot%&r o$$ic& t%an

'arson. At%ou#% t%& cass o$ cor'orations so& as so to s'r&ad> it as $ound s&ric&a9& 94

a4&rs in d&scri9in# at &ast on& ot%&r '&rson> or t4'& o$ '&rson: t%& Cron. To t%in" o$ t%&

Cron as a cor'oration so&> %os& '&rsonait4 is n&it%&r &uia&nt to t%& actua '&rson o$ t%&

"in# nor d&tac%a9& $ro it> is (cus4). It is in so& a4s &ss cus4 t%an t%& us& o$ t%&

conc&'t in a''ication to a 'arson. T%& c&ntra di$$icut4> t%at o$ (a9&4anc&) %&n on& %od&r o$

t%& o$$ic& di&s> is uni"&4 to aris& in t%is cas&: %&n a 'arson di&s t%&r& a4 9& so& d&a4

9&$or& anot%&r is a''oint&d> 9ut %&n a "in# di&s t%&r& is consid&ra9& inc&nti& to ao no

d&a4> %at&&r t%& a nic&ti&s. Nor is it n&c&ssari4 cusi&r t%an ot%&r> or& $aous

doctrin&s: it is no or& ridicuous to a"& to '&rsons o$ on& 9od4 t%an it is to a"& to 9odi&s

o$ on& '&rson It a"&s a (&ss) o$ t%& id&a o$ t%& cii s&ric& 94 aoin# it to 9& con$us&d it%

('&rsona) s&ric& o$ t%& "in#? it cannot co'& it% t%& id&a o$ a nationa d&9t ? it &&n introduc&s

con$usion into t%& 'osta s&ric& so it aso su##&sts t%at

a$$airs o$ stat& &nco'ass '&rsona 'asti&s.

T%& 'ro9& it% a9surd a constructions is not si'4 t%at s&rious conc&rns a4 9&

triiais&d> 9ut aso t%at triia att&rs a4 9& ta"&n too s&rious4> %ic% is ust as ti&/

consuin#. (So on# as t%& Stat& is not s&&n to 9& a '&rson in its on ri#%tB> & ust &it%&r

a"& an unarranta94 $r&& us& o$ t%& 6in#)s na&> or & ust 9& $or&&r sto''in# %o&s

t%rou#% %ic% a criina i#%t #id&.)

T%&r&$or& a cor'oration so& can 9& d&$in&d as a cor$oration sole consists o* one $erson and his

or her successors in so&e $articular o**ice or station8 who are incor$orated '! law in order to

gi-e the& certain legal ca$acities and ad-antages which the! would not ha-e in their natural

$erson.[36]

T%& Cron rst ca& to 9& id&nti&d as a cor'oration so& at a sinist&r ti&> durin# t%& r&i#n o$

H&nr4 5III.*0BIn ost i'ortant r&s'&cts> as touc%in# on t%& $unda&nta u&stions o$ 'oitics>
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn36https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn37https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn36https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn37


17/31

t%& !ritis% stat& %ad on# 9&&n a$$ord&d its on id&ntit4 as a cor'oration a##rat&> distinct $ro

t%& '&rsons o$ an4 indiiduas %o i#%t a"& it u' at an4 #i&n o&nt. T%& !ritis% stat& %ad

a s&cur& nationa d&9t> %ic% %ad 9&&n o&d $or so& ti& 94 t%& !ritis% (Pu9ic")> *3Band t%&

!ritis% 'u9ic %ad 9&&n r&ati&4 s&cur& sinc& t%& &nd o$ t%& s&&nt&&nt% c&ntur4 in t%& ri#%ts

t%at it %ad ta"&n $ro t%& Cron. T%& 'ro9&s> suc% as t%&4 &r&> &r& 'ro9&s o$

con&ni&nc& and not o$ $r&&do. !ut 'r&cis&4 9&caus& t%& id&a o$ t%& Cron as a cor'oration

so& r&ain&d ti&d u' in t%& doain o$ 'riat& a> it iustrat&d t%& #a' t%at &;ist&d in En#and

9&t&&n a and 'oitica conc&'tions o$ t%& stat&. T%& $act t%at t%& Cron as sti und&rstood

as a cor'oration so& i'i&d t%at t%&r& as so& distinction to 9& dran 9&t&&n att&rs o$

9asic 'oitica 'rinci'& and &r& u&stions o$ a. T%is as unsustaina9&.*BIt as not si'4

t%at it as not c&ar on %at 9asis t%is distinction coud conc&ia94 r&st it as i'ossi9&>

a$t&r a> to ar#u& t%at t%& cor'oration so& as us&$u in att&rs o$ a> sinc& it %ad s%on its&$

to 9& so sin#uar4 us&&ss. It as aso $ar $ro c&ar %&r& to dra t%& in& Maitand d&ot&s

consid&ra9& att&ntion to t%& 'ro9&s t%at t%& !ritis% Cron as &;'&ri&ncin# at t%& turn o$ t%&

t&nti&t% c&ntur4 in und&rstandin# its r&ations%i' it% its on cooni&s. T%at t%&4 &r& its

(on)> and %ad 9un t%&ir i$& as 'i&c&s o$ 'ro'&rt4> &ant t%at t%&r& as a a ar#u&nt $or

s&&in# t%& sti as t%& 'ro'&rt4 o$ t%& Cron> %ic% as its&$ s&&n sti as t%& cor'orat&

'&rsonait4 o$ H&r Ma&st4 t%& u&&n. T%is as conout&d> unor"a9& and anac%ronistic. It

as aso ironic. It &ant t%at in %at as o9ious4 a 'oitica r&ations%i' t%& su''os&d4

doinant 'artn&r as sti conc&i&d as an &ss&ntia4 'riat& &ntit4> and t%&r&$or& r&strict&d 94

t%& con&ntions o$ 'riat& a? %i& t%& coon4 its&$> %ic% %ad 9un i$& as a c%art&r&d

cor'oration cr&at&d 94 t%& Cron> as a9& to us& t%at id&ntit4 as a cor'oration a##rat& to

#&n&rat& a distinct id&ntit4 $or its&$ as on& 9od4 cor'orat& and 'oitic in $act and na&.+FB

4.2 C!%)!%ate Agg%egate

A cor'orat& a##rat& is an incor'orat&d #rou' o$ co/&;istin# '&rsons. E;a'&s: a 'riat&

iit&d co'ani&s> a 'u9ic iit&d co'ani&s> uti/nationa cor'orations> 'u9ic und&rta"in#

cor'orations.Cor'orat& a##rat& is a $ictitious 9od4 and cr&at&d 94 t%& 'oic4 o$ &n. T%&4

a4 aso 9& ca&d as 9od4)s Poitiu&. A cor'orat& a##rat& %as s&&ra &9&rs at a ti&.

T%&s& ar& t%& 'riat& o$$ic&s. T%& 'riar4 o9&ct o$ cor'orat& a##rat& is to do 9usin&ss. It is

&ss&r '&ran&nt t%an cor'orat& so&. Siiar4> cor'orat& a##rat& aso s%a %a& its on

'ro'&rti&s> d&9ts> it% %ic% t%& s%ar& %od&rs ar& not conc&rn&d. T%& s%ar& %od&rs ar&
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn38https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn39https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn40http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn38https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn39https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn40http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.html


18/31

conc&rn&d cor'oration co'an4 su9&ct to t%& &;t&nt o$ t%&ir s%ar& aount> not &;c&&din# t%at.

T%&4 %a& t%&ir on 'ro'&rti&s. T%& d&9ts o$ t%& co'an4 ar& not %ain# an4 conn&ction it%

t%&ir on 'ro'&rti&s. T%& d&9ts> 'ro$its> oss&s ar& r&at&d to t%& s%ar& aount on4.

So t%& '&r$&ct d&$inition o$ cor'orat& a##rat& oud 9& /

#or$oration aggregate consist o* two or &ore $ersons united in a societ!8 which is $reser-ed '!

a succession o* &e&'ers8 either *ore-er or till the cor$oration is dissol-ed '! the $ower that

*or&ed it8 '! the death o* all its &e&'ers8 '! surrender o* its charter or *ranchises8 or '!

*or*eiture. %uch cor$orations are the &a!or and alder&en o* cities8 the head and *ellows o* a

college8 the dean and cha$ter o* a cathedral church8 the stocholders o* a 'an or insurance

co&$an!8 etc.[41]

A cor$oration aggregate8 or 'od! $olitic8 or 'od! incor$orate8 is a collection o* &an!;

indi-iduals united in one 'od!8 under a s$ecial deno&ination8 ha-ing $er$etual succession under

an arti*icial *or&8 and -ested '! the $olic! o* the law8 with a ca$acit! o* acting in se-eral

res$ects as an indi-idual8 $articularl! o* taing and granting $ro$ert!8 contracting o'ligations8

and o* suing and 'eing sued; o* en+o!ing $ri-ileges and i&&unities in co&&on8 and o* e6ercising

a -ariet! o* $olitical rights8 &ore or less e6tensi-e8 according to the design o* its institution8 or

the $owers con*erred u$on it8 either at the ti&e o* its creation8 or at an! su'se %o ar& unit&d in on& soci&t4>

%ic% is continu&d 94 a succ&ssion o$ &9&rs. O$ t%is "ind ar& t%& a4or or coonat4 o$ a

cit4? t%& %&ads and $&os o$ a co&? t%& &9&rs o$ tradin# co'ani&s> and t%& i"&. Goin#

94 t%& a9o& d&scri'tion o$ cor'orations a##rat&> it oud o#ica4 $oo t%at &&r4 $or o$

conc&rt&d actiit4 o$ iin# indiiduas ai&d at a 'articuar &nd> oud &ad to t%&ir acts

coin# to "non t%rou#% t%& #ass o$ incor'oration %ic% r&ais&s t%&ir co9in&d o'&rations as

on& sin#& act> '&r$or&d 94 a sin#& '&rsonait4. Ho&&r> it is in t%is rard t%at t%& r&a iits

o$ arti$icia '&rsonait4 ar& disc&rni9&. T%& a d&&s on4 c&rtain $ors o$ conc&rt&d action as

&i#i9& $or r&co#nition t%rou#% incor'oration? t%us %i& oint stoc" co'ani&s ar& r&co#nis&d as

incor'orat&d 9odi&s> associations suc% as 'artn&rs%i's> trad& unions and ot%&r or#ani@ations ar&

not r&co#nis&d as incor'orat&d 9odi&s $or arious r&asons. T%&s& #rou's %a& co& to assu&

t%& t&r (unincor'orat&d associations.


19/31

4.4 T*e!%(e !" C!%)!%ate Pe%!#al(t+

3.3.1 The iction theor!= T%is t%&or4 o$ cor'oration is said to 9& 'rou#at&d 94 Po'& Innoc&nt

I5 'articuar4> 5on Sai#n4>

Co"&> !ac"ston& and Saond. Accordin# to t%is t%&or4> t%& a '&rsonait4 o$ &ntiti&s ot%&r

t%an %uan 9&in#s is t%& r&sut o$ a $iction. T%& $aous cas& o$ Saoon A Saoon Co Ltd is

a 'roo$ o$ t%& En#is% court ado'tion o$ t%& $iction t%&or4. In t%is cas&> Lord Has9ur4 stat&d t%at

t%& i'ortant u&stion to d&cid& as %&t%&r in trut% an arti$icia cr&ation o$ t%& isatur& %ad

9&&n aid4 constitut&d. It as %&d t%at as t%& co'an4 %ad $u$i&d r&uir&&nts o$ t%&

Co'ani&s Act> t%& co'an4 9&co&s a '&rson at a> ind&'&nd&nt and distinct $ro its

&9&rs.+*B

3.3.2 The #oncession theor!= 7nd&r t%is t%&or4 t%& stat& is consid&r&d to 9& in t%& sa& && as

t%& %uan 9&in# and as suc%> it can 9&sto on or it%dra a '&rsonait4 $ro ot%&r #rou's

and associations it%in its urisdictions as an attri9ut& o$ its so&r&i#nt4. H&nc&> a uristic '&rson

is &r&4 a conc&ssion or cr&ation o$ t%& stat&. Conc&ssion t%&or4 is o$t&n rard&d as t%&

o$$s'rin# o$ t%& $iction t%&or4 as it %as siiar ass&rtion t%at t%& cor'orations it%in t%& stat&

%a& no a '&rsonait4 &;c&'t as it is conc&d&d 94 t%& stat&. E;'on&nts o$ t%& $iction t%&or4>

$or &;a'&> Sai#n4> Dic&4 and Saond ar& $ound to su''ort t%is t%&or4. Non&t%&&ss> it is

o9ious t%at %i& t%& $iction t%&or4 is utiat&4 a '%ioso'%ica t%&or4 t%at a cor'oration is

&r&4 a na& and a t%in# o$ t%& int&&ct> t%& conc&ssion t%&or4 is indi$$&r&nt as rards to t%&

u&stion o$ t%& r&ait4 o$ a cor'oration in t%at it $ocus on t%& sourc&s o$ %ic% t%& a 'o&r is

d&ri&d.++B

3.3.3 The Pur$ose theor!: T%& adocat&s %o ar& associat&d it% t%is t%&or4 ar& E.I !&""&r>

Ao4s !rin@ and D&iius. Siiar to t%& $iction and conc&ssion t%&ori&s> it d&car&s t%at on4

%uan 9&in#s can 9& a '&rson and %a& ri#%ts. 7nd&r t%is t%&or4> uristic '&rson is no '&rson at

a 9ut &r&4 as a su9&ct &ss 'ro'&rt4 d&stin&d $or a 'articuar 'ur'os& and t%at t%&r& is

on&rs%i' 9ut no on&r. T%& uristic '&rson is not construct&d round a #rou' o$ '&rson 9ut 9as&d

on t%& o9&ct and 'ur'os&. T%& 'ro'&rt4 o$ t%& uristic '&rson do&s not 9&on# to an49od4 9ut it

a4 9& d&dicat&d and a4 9ound 94 c&rtain o9&cts.+,B

3.3.4 The %!&'olist theor!: T%is t%&or4 is aso "non as t%& 9rac"&t t%&or4. It as s&t u' 94

I%&rin# and at&r d&&o'&d 'articuar4 94 Maruis d& 5ar&i&s/SoiQr&s. !asica4> t%is

t%&or4 is siiar to t%& $iction t%&or4 in t%at it r&co#ni@&s t%at on4 %uan 9&in#s %a& int&r&sts
http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn43http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn44http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn45https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn45http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn43http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn44http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn45http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.html


20/31

and ri#%ts o$ a a '&rson.*3 Accordin# to I%&rin#> t%& conc&'tion o$ cor'orat& '&rsonait4 is

indis'&nsa9& and &r&4 an &conoic d&ic& 94 %ic% si'i$4 t%& tas" o$ coordinatin# a

r&ations. H&nc&> %&n it is n&c&ssar4> it is &'%asi@&d t%at t%& a s%oud oo" 9&%ind t%& &ntit4

to disco&r t%& r&a stat& o$ a$$airs. T%is is c&ar4 in in& it% t%& 'rinci'& o$ i$tin# o$ t%&

cor'orat& &i.

3.3.5 The )ealist theor!: T%is t%&or4 as $ound&d 94 G&ran urist> Ko%ann&s At%usius %as 9&&n

ost 'roin&nt4 adocat&d 94 Otto on Gi&r"&. Accordin# to t%is t%&or4> a a '&rson is a r&a

'&rsonait4 in an &;tra uridica and 'r&/uridica s&ns& o$ t%& ord. It aso assu&s t%at t%&

su9&cts o$ ri#%ts n&&d not 9&on# &r&4 to %uan 9&in#s 9ut to &&r4 9&in# %ic% 'oss&ss&s a

i and i$& o$ its on. As suc%> 9&in# a uristic '&rson and as (ai& as t%& %uan 9&in#> a

cor'oration is aso su9&ct&d to ri#%ts. 7nd&r t%& r&aist t%&or4> a cor'oration &;ists as an

o9&cti&4 r&a &ntit4 and t%& a &r&4 r&co#ni@&s and #i&s &$$&ct to its &;ist&nc&. T%& r&aist

urist aso cont&nd&d t%at t%& a %as no 'o&r to cr&at& an &ntit4 9ut &r&4 %ain# t%& ri#%t to

r&co#ni@& or not to r&co#ni@& an &ntit4. A cor'oration $ro t%& r&aist '&rs'&cti& is a socia

or#anis %i& a %uan is rard&d as a '%4sica or#anis. A cor'oration $ro t%& r&aist

'&rs'&cti& is a socia or#anis %i& a %uan is rard&d as a '%4sica or#anis.+-B

4.' L("t(#g !% P(e%0(#g t*e C!%)!%ate ;e(l

A cor'oration is cot% it% a distinct '&rsonait4 94 $iction o$ a> 4&t in r&ait4 it is an

association o$ '&rsons %o ar& in $act> in a a4> t%& 9&n&$icia on&rs o$ t%& 'ro'&rt4 o$ t%& 9od4

cor'orat&. A co'an4 9&in# an arti$icia '&rson> cannot act on its on> it can act on4 t%rou#%

natura '&rsons.

%&r& t%& a &ntit4 o$ t%& co'an4 is 9&in# us&d $or $raudu&nt and dis%on&st 'ur'os&> t%&

indiiduas conc&rn&d i not 9& ao&d to ta"& t%& s%&t&r 9&%ind t%& cor'orat& '&rsonait4.

T%& court in suc% cas&s s%a 9r&a" t%rou#% t%& cor'orat& s%& and a''4 t%& 'rinci'& o$ %at is

"non as i$tin# or 'i&rcin# t%& cor'orat& &i. T%& cor'orat& &i o$ a co'an4 a4 9& i$t&d

to asc&rtain t%& tru& c%aract&r and &conoic r&aiti&s 9&%ind t%& a '&rsonait4 o$ t%& co'an4.

7ndou9t&d4> t%& t%&or4 o$ cor'orat& &ntit4 o$ a co'an4 is sti t%& 9asic 'rinci'& on %ic% t%&

%o& a o$ cor'orations is 9as&d. !ut t%& s&'arat& '&rsonait4 o$ t%& co'an4> 9&in# a

statutor4 'rii&> it ust aa4s 9& us&d $or itiat& 9usin&ss 'ur'os&s on4.

InNew ,ori>ons Ltd. -. /nion o* India and others[47]> t%& a''&ant co'an4 %&n s&&n t%rou#%

t%& &i co&rin# t%& $ac& o$ N& Hori@ons Ltd. as $ound to 9& a oint &ntur& cr&at&d as a
http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn46http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn47http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn46http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn47


21/31

r&sut o$ r&or#ani@ation in 12. Si;t4 '&r c&nt o$ its s%ar& ca'ita as on&d 94 an Indian #rou'

o$ co'ani&s and $ort4 '&r c&nt s%ar& ca'ita as on&d 94 a Sin#a'or& 9as&d $or&i#n co'an4.

T%& Go&rn&nt %ad init&d t&nd&rs $or distri9ution o$ Stat& ar#&ss&. T%& a''&ants t&nd&r as

not consid&r&d on t%& #round t%at t%& &;'&ri&nc& o$ its constitu&nts as not t%& sa& as t%at o$

t%& a''&ant and 9&caus& o$ inad&uat& &;'&ri&nc&> t%& r&s'ond&nts t&nd&r as acc&'t&d as t%&4

%ad on# &;'&ri&nc& and %ad aso o$$&r&d a uc% o&r aount o$ ro4at4. T%& a''&ants

'&ad&d t%& &;'&ri&nc& o$ constitu&nts o$ t%& oint &ntur& co'an4 s%oud 9& tr&at&d as its on

&;'&ri&nc& and cor'orat& &i s%oud 9& s&&n t%rou#% $or t%is 'ur'os&. Aoin# t%& a''&a> t%&

Su'r&& Court ru&d t%at t%& action o$ t%& Stat& Go&rn&nt in d&t&rinin# t%& &i#i9iit4 o$

t&nd&r)s 9&&n not in consonanc& it% t%& standards or nors and as ar9itrar4 and irrationa.

T%& Court $urt%&r o9s&r&d t%at in cas& o$ a oint &ntur& cor'oration> t%& Court can s&& t%rou#%

t%& cor'orat& &i to asc&rtain t%& tru& natur& o$ a co'an4. T%& doctrin& o$ i$tin# t%& cor'orat&

&i is ino"&d %&n t%& cor'orat& '&rsonait4 is $ound to 9& o''os&d to ustic&> con&ni&nc& or

int&r&st o$ r&&nu&.+3B

T%& 'rinci'& o$ i$tin# t%& cor'orat& &i %as $ound statutor4 r&co#nition in c&rtain 'roisions

i"& S&ctions +,> 1+0> 212> 2+0 and ,+2 o$ t%& Co'ani&s Act. Cor'orat& &i is said to 9& i$t&d

%&n t%& court i#nor&s t%& co'an4 and conc&rns its&$ dir&ct4 it% t%& &9&rs or ana#&rs.

T%& Su'r&& Court in %u'hra Muher+ee ? Another -. Ms. @harat #oing #oal Ltd. @##LB ?

others[49]%as o9s&r&d t%at t%& Court i 9& usti$i&d in 'i&rcin# t%& &i o$ incor'oration in

ord&r to asc&rtain t%& tru& natur& o$ t%& transaction as to %o &r& t%& r&a 'arti&s to t%& sa& and

%&t%&r it as 9&t&&n %us9ands and i&s 9&%ind t%& $acad& o$ s&'arat& &ntit4 o$ t%& co'an4.

InP.N.@. inance Ltd. -. %hital Prasad Cain,FB> t%& court %&d t%at t%& doctrin& o$ 'i&rcin# t%&

cor'orat& &i a4 9& ino"&d %&n&&r n&c&ssar4 94 t%& court in t%& int&r&st o$ ustic&> to

'r&&nt t%& cor'orat& &ntit4 $ro 9&in# us&d as an instru&nt o$ $raud> and t%& $unda&nta

'rinci'& o$ cor'orat& '&rsonait4 its&$ a4 9& disrard&d %ain# rard to t%& &;i#&nci&s o$ t%&

situation and $or t%& &nds o$ ustic&.

T%& doctrin& o$ i$tin# t%& cor'orat& &i can aso 9& us&d to 'r&&nt a9us& o$ 'roc&ss o$ Court.

T%us in@i+a! u&ar Agarwal ? others -. )atanlal @agaria ? others[51]>t%& Court o9s&r&d t%at

at%ou#% 9road4 s'&a"in# t%& 'rinci'& o$ i$tin# t%& cor'orat& &i i 9& aaia9& in t%&

statut& i"& Co'ani&s Act> and ot%&r $inancia and ta;in# statut&s &tc. 9ut aditt&d4 on& cannot
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn48https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn49https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn50https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn51https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn51https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn48https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn49https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn50https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn51


22/31

ru& out t%& a''ica9iit4 o$ t%& 'rinci'& &s&%&r& i$ t%& situations ar& $ain# und&r t%&

$ooin# catori&s : t%&r&$or&> o#ica4 $oos t%at t%&

doctrin& o$ i$tin# t%& cor'orat& &i or 'rinci'& anao#ous t%&r&to cannot 9& ru&d out $ro

9&in# us&d as a too o$ udiciar4 in adudicatin# o&r t%& dis'ut& 9&t&&n to 'arti&s. T%us t%&

Li$tin# o$ cor'orat& &i or 'rinci'& anao#ous t%&r&to cannot 9& ono'o4 o$ an4 'articuar

statut&. It can & 9& us&d 94 t%& udiciar4 or t%& Court to 'r&&nt t%& a9us& o$ 'roc&ss o$ Court

o$ La.

C-APTER '

LEGAL PERSONALIT& IN INDIA

'.1 a Koint Hindu 8ai4 do&s not %a& a s&'arat& a

id&ntit4 and is not a uristic '&rson. It is not ca'a9& o$ %odin# 'ro'&rt4 and t%& a do&s not

attri9ut& an4 '&rsonait4 to a Koint Hindu 8ai4. T%& 6arta is o&ra %&ad o$ t%& oint $ai4

%o ana#&s t%& &ntir& $ai4 'ro'&rt4. H& %as a ri#%t to ai&nat& t%& 'ro'&rt4 and ot%&r

&9&rs o$ t%& $ai4 ar& und&r %is contro. H& can su& and 9& su&d on t%& 9&%a$ o$ t%& oint

$ai4. In uristic t&rs> %& is a cor'oration so& %ain# a dou9& ca'acit4> i.&.> as a natura '&rson

%& is t%& &d&st &9&r o$ t%& $ai4 and as a a '&rson %& is in t%& ca'acit4 o$ t%& 6arta o$

t%& Koint 8ai4.

'.2 -(#/u I/!l

Accordin# to t%& on# &sta9is%&d t%&or4 %ic% as $ound&d u'on t%& r&i#ious custos o$ t%&

Hindus> a Hindu ido is a (uristic &ntit4) %ain# a (uridica status) and it %as t%& 'o&r to su&


23/31

and 9&in# su&d. !ut uridica '&rson in t%& ido is not t%& at&ria ia#& 9ut t%& ia#& d&&o's

its&$ into a a '&rson %&n it is cons&crat&d 94 t%& Pran Pratist%a c&r&on4. ,2BAccordin# to

Hindu a and arious d&cisions o$ t%& courts> t%& 'osition o$ ido is t%at o$ a inor and a

ana#&r is a''oint&d to act on ido)s 9&%a$. Li"& a inor> an ido cannot &;'r&ss its&$ and i"& a

#uardian> ana#&r %as so& iitations und&r %ic% %& %as to act and '&r$or its duti&s.

Accordin# to t%is ru&> S%ri Guru Grant% Sa%i9 is aso a uristic '&rson. !ut ot%&r r&i#ious t&;ts

suc% as Gita> uran> !i9& ar& not consid&r&d to 9& uristic '&rsons.

'.4 T*e U#(!# !" I#/(a a#/ t*e State G!6e%#9e#t

T%& 7nion o$ India and t%& Stat&s %a& aso 9&&n r&co#ni@&d as cor'orat& &ntiti&s und&r Artic&

*FF o$ t%& Constitution o$ India. Artic& *FF r&atin# to Suits and 'roc&&din#s is as $oos:

su9&ct to an4 'roisions %ic% a4

9& ad& 94 Act o$ Paria&nt or o$ t%& Lisatur& o$ suc% Stat& &nact&d 94 irtu& o$ 'o&rs

con$&rr&d 94 t%is Constitution> su& or 9& su&d in r&ation to t%&ir r&s'&cti& a$$airs in t%& i"&

cas&s as t%& Doinion o$ India and t%& corr&s'ondin# Proinc&s or t%& corr&s'ondin# Indian

Stat&s i#%t %a& su&d or 9&&n su&d i$ t%is Constitution %ad not 9&&n &nact&d


24/31

in t%& Go&rnor and s%a 9& &;&rcis&d 94 %i &it%&r dir&ct4 or t%rou#% o$$ic&rs su9ordinat& to

%i in accordanc& it% t%& Constitution.,,B

T%us> t%&4 ar& not '&rsona4 ia9& $or t%&ir acts or oissions nor ar& t%&4 dir&ct4 ia9& in a

Court o$ a $or t%&ir o$$icia acts. It is t%& Stat& %&t%&r t%& C&ntr& or t%& $&d&rat&d unit %ic%

is ia9& $or t%& tort or t%& 9r&ac% o$ contract coitt&d 94 a Minist&r in %is o$$icia ca'acit4.

'.' Pa%t#e%*() F(%9 a#/ C!9)a#+

Partn&rs%i' $ir is not a a '&rson in t%& &4& o$ a. T%&r& is no a &ntit4> standin# o&r

a#ainst t%& 'artn&rs. T%& 'ro'&rt4 and d&9ts o$ t%& $ir ar& not%in# &s& t%an t%os& o$ t%&

'artn&rs. It can n&it%&r su& nor 9& su&d in its on na&. T%& &9&r 'artn&rs cannot contract

it% t%&ir 'artn&rs%i' $ir 9&caus& a an cannot contract it% %is&$.

7ni"& a 'artn&rs%i' $ir %ic% %as no &;ist&nc& a'art $ro its &9&rs> incor'orat&d co'an4

%as a distinct a or uristic &;ist&nc& ind&'&nd&nt o$ its &9&rs. 7nd&r t%& a> a cor'oration

or a co'an4 is a distinct &ntit4 it is ca'a9& o$ &no4in# ri#%ts and 9&in# su9&cts to

duti&s %ic% ar& not t%& sa& as t%os& &no4&d or 9orn& 94 its &9&rs. It a4 su& or 9& su&d in

its on na& and a4 &nt&r into contracts it% t%ird 'arti&s ind&'&nd&nt4 and t%& &9&rs

t%&s&&s can &nt&r into t%& contract it% t%& co'an4.,-B

'.5 Ot*e% Legal Pe%!#al(t(e

1= R!I: T%& R&s&r& !an" o$ India %as a cor'orat& &;ist&nc& 9&caus& it is an incor'orat&d 9od4

%ain# an ind&'&nd&nt &;ist&nc&.

2= 7PSC: 7nion Pu9ic S&ric& Coission is not r&co#ni@&d as a a '&rson as it cannot %od

'ro'&rt4 in t%&ir on na&s and can n&it%&r su& nor 9& su&d in a court o$ a.

*= A 8und d&dicat&d $or a R&i#ious Pur'os&: it as aso o$ t%& natur& o$ a a '&rson. It %ad

c&rtain ri#%ts and r&c&i&d c&rtain 'rot&ction $ro a> suc% as t%& 'ro'&rt4 d&dicat&d to a at%.


25/31

+= Rist&r&d Soci&ti&s: Soci&ti&s rist&r&d und&r Soci&ti&s Ristration Act> 13-F ar& aso %&d to

9& a '&rsons.

,= Trad& 7nion: Rist&r&d trad& unions ar& consid&r&d as uristic '&rsons.

-= Institutions i"& C%urc%> 7ni&rsit4> Li9rar4 &tc.: t%&s& ar& consid&r&d as uristic '&rsons.

0= 7nd&r t%& Indian a> Cor'oration A##rat& ar& a t%os& 9odi&s or associations %ic% ar&

incor'orat&d und&r a statut& o$ t%& Paria&nt or Stat& Lisatur&. In t%is cator4 co&s a

tradin# and non/tradin# associations %ic% ar& incor'orat&d und&r t%& r&&ant i"& t%& Stat&

Tradin# Cor'oration> Munici'a Cor'oration> Roada4s Cor'oration> t%& Pu9ic Co'ani&s>

Stat& !an" o$ India> t%& Li$& Insuranc& Cor'oration> t%& uni&rsiti&s> Panc%a4ats> Cor'orati&

Soci&ti&s.,0B
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn57https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn57


26/31

C-APTER 5

CONCLUSION

5.1 L(9(tat(!# t! Legal Pe%!#al(t+

Sinc& t%& Industria R&oution> %&n cor'orations ros& to 'o&r> t%& iitations o$ a a

cor'orat& '&rsonait4 %a& 9&&n an issu& o$ constant d&9at&. %i& t%& #rantin# o$ '&rson%ood

can %&' a"& cor'orations a4 r&s'onsi9& $or t%&ir actions> it aso o'&ns t%& door to an4

or& intricat& u&stions. 8or &;a'&> i$ a cor'oration %as a '&rsonait4 s&'arat& $ro its

s%ar&%od&rs or on&rs> so& ar#u& t%at it ust aso %a& indiidua ri#%ts> suc% as t%& ri#%t to

ot&. I$ #rant&d t%& ri#%t to ot&> %o&&r> t%&n s%ar&%od&rs i in &$$&ct %a& t%& ri#%t to ot&

tic&: onc& as 'riat& indiiduas> and onc& in t%& '&rsonait4 o$ t%& cor'oration. As t%is con$ict

it% ost otin# s4st&s> it r&ains a contro&rsia issu& t%rou#%out a circ&s.

T%&r& ar& iitations to t%& a r&co#nition o$ a '&rsons. La &ntiti&s cannot arr4> t%&4

usua4 cannot ot& or %od 'u9ic o$$ic&> and in ost urisdictions t%&r& ar& c&rtain 'ositions

%ic% t%&4 cannot occu'4.,3BT%& &;t&nt to %ic% a a &ntit4 cancoit a cri&ari&s $ro

countr4 to countr4. C&rtain countri&s 'ro%i9it a a &ntit4 $ro %odin# %uan ri#%ts? ot%&r

countri&s '&rit arti$icia '&rsons to &no4 c&rtain 'rot&ctions $ro t%& stat& t%at ar& traditiona4

d&scri9&d as %uan ri#%ts.

S'&cia ru&s a''4 to a '&rsons in r&ation to t%& a o$ d&$aation. D&$aation is t%& ar&a

o$ a in %ic% a '&rsons r&'utation %as 9&&n una$u4 daa#&d. T%is is consid&r&d an i in

its&$ in rard to natura '&rson> 9ut a a '&rson is r&uir&d to s%o actua or i"&4 on&tar4

oss 9&$or& a suit $or d&$aation i succ&&d.

In 2F1F> t%& 7nit&d Stat&s Su'r&& Court r&nd&r&d a d&cision t%at an4 a sc%oars d&scri9&

as a ictor4 $or cor'oration ri#%ts. T%& d&cision> #iti>ens /nited -. ederal :lection

#o&&ittee &;'and&d t%& $r&& s'&&c% ri#%ts o$ cor'orations 94 %odin# t%at it is unconstitutiona

to 'ro%i9it a '&rsons $ro &n#a#in# in &&ction &;'&nditur&s and &&ction&&rin#. %i& critics

s&& t%is ruin# as tantaount to aoin# cor'orat&/s'onsor&d candidat&s in t%& $utur&>

'ro'on&nts ar#u& t%at it is un$air to #rant a '&rsonait4 t%at #rants &ua r&s'onsi9iiti&s 9ut

not &ua ri#%ts.

T%ou#% a co'an4 is a a '&rson> it is not a citi@&n und&r t%& constitutiona a o$ India or t%&

Citi@&ns%i' Act> 1,,. T%& r&ason as to %4 a co'an4 cannot 9& tr&at&d as a citi@&n is t%at

citi@&ns%i' is aaia9& to indiiduas or natura '&rsons on4 and not to uristic '&rsons. T%&
http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://en.wikipedia.org/wiki/Marriagehttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn58http://en.wikipedia.org/wiki/Corporate_crimehttp://en.wikipedia.org/wiki/Corporate_crimehttp://en.wikipedia.org/wiki/Corporate_crimehttp://en.wikipedia.org/wiki/Human_righthttp://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttp://en.wikipedia.org/wiki/Marriagehttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn58http://en.wikipedia.org/wiki/Corporate_crimehttp://en.wikipedia.org/wiki/Human_right


27/31

u&stion %&t%&r a cor'oration is a citi@&n as d&cid&d 94 t%& Su'r&& Court in %tate Trading

#or$oration o* India -. #o&&ercial Ta6 7**icer[59].Sinc& a co'an4 is not tr&at&d as a citi@&n> it

cannot cai 'rot&ction o$ suc% $unda&nta ri#%ts as ar& &;'r&ss4 #uarant&&d to citi@&ns> 9ut it

can c&rtain4 cai t%& 'rot&ction o$ suc% $unda&nta ri#%ts as ar& #uarant&&d to a '&rsons

%&t%&r citi@&ns or not. In Tata :ngineering #o&$an! -. %tate o* @ihar-FBit as %&d t%at sinc&

t%& a '&rsonait4 o$ a co'an4 is ato#&t%&r di$$&r&nt $ro t%at o$ its &9&rs and s%ar&/

%od&rs> it cannot cai 'rot&ction o$ $unda&nta ri#%ts at%ou#% a its &9&rs ar& Indian

citi@&ns. T%ou#% a co'an4 is not a citi@&n> it do&s %a& a nationait4> doici& and r&sid&nc&. In

cas& o$ r&sid&nc& o$ a co'an4> it %as 9&&n %&d t%at $or t%& 'ur'os&s o$ inco& ta; a> a

co'an4 r&sid&s %&r& its r&a 9usin&ss is carri&d on and t%& r&a 9usin&ss o$ a co'an4 s%a 9&

d&&&d to 9& carri&d on %&r& its C&ntra ana#&&nt and contro is actua4 ocat&d.

5.2 C!#0lu(!#

T%& $oroin# ana4sis a"&s it a9undant4 c&ar t%at incor'oration %ad #r&at i'ortanc&

9&caus& it attri9ut&s a '&rsonait4 to non iin# &ntiti&s suc% as co'ani&s> institutions &tc.

%ic% %&' in d&t&rinin# t%&ir ri#%ts and duti&s. Cot%&d it% a '&rsonait4> t%&s& non iin#

'&rsonaiti&s can on> us& and dis'os& o$ 'ro'&rt4 in t%&ir on na&s. 7nincor'orat&d

institutions ar& d&ni&d t%is adanta#& 9&caus& t%&ir &;ist&nc& is not di$$&r&nt $ro t%& &9&rs.

6&&son t%rou#% %is ana4tica a''roac% to a '&rsonait4 %as concud&d t%at t%&r& is no

di&r#&nc& 9&t&&n natura '&rsons and a '&rsons $or t%& 'ur'os&s o$ a. In a '&rsonait4

i'i&s con$&r&nt o$ ri#%ts and duti&s. T%&r&$or&> $or t%& con&ni&nt attri9ution o$ ri#%ts and

duti&s> t%& conc&'tion o$ uristic '&rsonait4 s%oud 9& us&d in its 'roc&dura $or.

BIBLIOGRAP-&

BOO !riann>Curis$rudence= Theor! and #onte6t> S&&t and Ma;&> London> 2FF-.

2. !od&n%&i&r> Ed#ar>Curis$rudence the Philoso$h! and Method o* the Law> 7ni&rsa

La Pu9is%in#> N& D&%i> 2FF-.

*. D%4ani S.N>Curis$rudence Indian Legal Theor!B> C&ntra La A#&nc4> Aa%a9ad>

2F1F.

+. G%orad& 5ia4>Curis$rudence ? Legal Theor!> Hindu La Hous&> Pun&> 2FF3.

,. Hoand> T%oas Ers"in&> 6.C.> The :le&ents o* Curis$rudence> 7ni&rsa La

Pu9is%in# Co. Pt. Ltd.> N& D&%i> 2FF-.
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn59https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn59https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn60http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.htmlhttps://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn59https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftn60http://law-projects.blogspot.in/2015/02/legal-person-scope-and-limitation.html


28/31

-. M4n&ni S.R>Curis$rudence> Asia La Hous&> H4d&ra9ad> 2F1F.

0. Parana'& N.5.> Studi&s in Kuris'rud&nc& and La T%&or4> C&ntra La A#&nc4>

Aa%a9ad> 2F1F.

3. Paton> G..> Te6t @oo o* Curis$rudence> O;$ord 7ni&rsit4 Pr&ss> N& D&%i> 2FF0.

. Saond>Curis$rudence> T&$t% &dition> 1--.

CASES

1. @i+a! u&ar Agarwal ? others -. )atanlal @agaria ? others

2. #iti>ens /nited -. ederal :lection #o&&ittee

*. Mathii han -. eda Leiwai

+. New ,ori>ons Ltd. -. /nion o* India and others

,. P.N.@. inance Ltd. -. %hital Prasad Cain

-. )e ean #oo$er ean -. %te-ens

0. %araswati -. )a+a o$al

3. %tate Trading #or$oration o* India. #o&&ercial Ta6 7**icer

. %u'hra Muher+ee ? Another -. Ms. @harat #oing #oal Ltd. @##LB ? others

1F. Tata :ngineering #o&$an! -. %tate o* @ihar

11. 0illia&s -. 0illia&s

1BS.N.D%4ani>Curis$rudence Indian Legal Theor!B> C&ntra La A#&nc4> Aa%a9ad> 2F1F> '.

2+,.

2B5ia4 G%orad&>Curis$rudence ? Legal Theor!> Hindu La Hous&> Pun&> 2FF3> '. *3/*F.

*BS.N.D%4ani>Curis$rudence Indian Legal Theor!B> C&ntra La A#&nc4> Aa%a9ad> 2F1F> '.

2+-.

+BN.5. Parana'&> %tudies in Curis$rudence and Legal Theor!> C&ntra La A#&nc4> Aa%a9ad>

2F1F> '. *+1.

,B%al&ond on Curis$rudence> T&$t% &dition> 1--> ' 2.

-BS.N.D%4ani>Curis$rudence Indian Legal Theor!B> C&ntra La A#&nc4> Aa%a9ad> 2F1F> '.

2+0.

0BDr. S.R. M4n&ni>Curis$rudence> Asia La Hous&> H4d&ra9ad> 2F1F> '. 2+0.
https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref1https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref2https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref3https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref4https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref5https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref6https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref7https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref1https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref2https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref3https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref4https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref5https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref6https://www.blogger.com/blogger.g?blogID=3104334703262504421#_ftnref7


29/31

3B)e 0il&ers Trusts Moore. 0ing*ield> Law o* Torts> 1t%&dition> '.2+.

1+B8it@#&rad> P.K.> Saond>Curis$rudence> 12t% &dition> '.*F1

1,BS&ction 20 o$ IPC.

1-BAIR 2FF2 SC ,,+

10B). .Price> %tudies in Curis$rudence and Legal Theor!> C&ntra La A#&nc4>

Aa%a9ad> 2F1F> '. *+*.

2+B6&&ton>:le&entar! Princi$les o* Curis$rudence> '. 1+.

2,BL&adin# En#is% cas& is@aldwin -. #asella> 1302 LR 0 E; *2, and Indian cas& on t%is

isrishna )ao -. Marati8AIR 1*0 Na# 10.

2-B &d. SHARSOOD>


30/31

*+B8.. Maitand> #ollected $a$ers> &d. H.A.L. 8is%&r 111=> o.1>

'. 1-1.

*,BI9id.

*-B,als'ur!Ds laws o* :ngland> +t% &dn> 10+> 5o. > 'ara 12F-. E;a'&s incud& t%& Pu9ic

Trust&& and 9is%o's it%in t%& c%urc% o$ En#and.

*0B!ac"> Aistair. Introduction: t%& 'u9ic i9rar4 in conc&'t and r&ait4. 13,F2FFF. Eds.

Aistair !ac" and P&t&r Hoar&. Ca9rid#& 7ni&rsit4 Pr&ss> 2FF-. Ca9rid#& Histori&s

Onin&. Ca9rid#& 7ni&rsit4 Pr&ss. 1+ A'ri 2F12 DOI:1F.1F10CHOL03F,2103F01.FF+

*3B!uidin# Soci&ti&s Act 13-> Sc%&du& 2> 'ara * Ta9&> it& 12.

*B!oui&rs La Dictionar4> 3t% Ed. 1-*> '. 1F2.

+,BDan/Co%&n> M.)ights8 Persons8 and 7rgani>ations> 7ni&rsit4 o$ Cai$ornia Pr&ss>

!&r"&&4> 13-> '. ,.

+-Bo4tas%> K. & Must Sto' 5i&in# Cor'orations as P&o'& 2F12 at 12:*F '.

+B AIR 2FFF SC 12F*.

,FB


31/31

,+BU ,*. Constitution o$ India.

,,BU 1,+. Constitution o$ India.

,-BN. 5. Parana'&. Studi&s in Kuris'rud&nc& and La T%&or4. C&ntra La A#&nc4. '.*0,

,0B,0B S. R. M4n&ni. Kuris'rud&nc&

Date post:	24-Feb-2018
Category:	Documents
Upload:	aditiindrani
View:	223 times
Download:	0 times

Legal Person Juris II

Documents