Jurisprudence-II

Natural & legal person

NATURAL PERSON LEGAL PERSON

Natural person is a living human being and truly
and really grant a personality. Unborn child and
a child in mother ‘s womb being considered as a
living person and considered as a natural
person; He possesses property rightly as well.
Natural person is really and in the eye of law is
a recognized person. He possesses rights and he
has to fulfill duties also.
Legal person may be such subject matter who is
not a living creature whereas law considered
him person and grant status of legal person.
Therefore, legal person is a real or imaginary
person who is granted personality by law

Types:
Corporate Aggregate: A Corporation aggregate is a group of co-existing persons, a combination of
persons who are united together with a view to promote their common interest which is generally
the business or commercial interest. Ex, Municipal Corporation, LIC, Railways Corporations, State
Bank of India.

Corporation Sole: Corporation sole is not endowed with a separate legal personality. It is composed
of one person only who is incorporated by law. The same person has a dual character, one as a
natural person and the other as Corporation sole being created by Statute. Ex. Governor of RBI, The
Post Master General, The Registrar of Supreme Court & High Court.

Legal Status of

1. Dead person: Dead man is not a legal person. As soon as a man dies, he ceases to have a
legal personality. Dead men do not remain as bearers of rights and duties it is said that they
have laid down their rights and duties with their death. As far as a dead man‘s body is
concerned criminal law secures a decent burial to all dead men. Section 297 of Indian Penal
Code also provides punishment for committing crime which amounts to indignity to any
human corpse
2. Unborn Child: A child in mother ‘s womb is by legal fiction regarded as already born. If he is
born alive, he will have a legal status. Though law normally takes cognizance of living human
beings yet the law makes an exception in case of an infant. Under section 315 of the Indian
Penal Code, 1860 the infliction of pre-natal injury on a child, which is capable of being born
alive and which prevents it from being so could amount to an offence of child destruction.
3. Animal: Law does not recognize beasts or lower animals as persons because they are merely
things and have no natural or legal rights. Modern Law does not recognize animals as bearer
of rights and duties. Law is made for human beings and all things including animals are for
men. No animal can be the owner of property from a person to an animal
4. Idol: It has been judicially held that idol is a juristic person and as such it can hold property.
Its position is, however, like that of a minor and the priest, i.e., Pujari acts as a guardian to
look after its interests.

Corporate Personality:
As per the law, a corporation is an artificial/legal person. It has the ability to enjoy rights, fulfill its
duties and hold property in its own name. Hence, the concept of corporate personality is a singular
creation of the law.

Elements/Requirements:

1. A group or body of human persons must be linked for a specific purpose;

2. The company must have organs through which it acts; and
3. The company is given will/animus by legal fiction.
Theories:

Fiction:
This hypothesis was given by Savigny, Salmond, Blackstone and Hollan.

Corporations do not possess inherent characteristics of personhood but are granted legal
personhood by the state for practical and legal convenience. In other words, the law treats a
corporation as if it were a natural person, capable of owning property, entering into contracts, and
being held responsible for its actions.

criticism only provides a framework to understand the concept of corporate personality and
does not attempt to address the other complex socio-economic factors that arise out of
giving personhood to a company.

Realist:

This theory was proposed by the German Jurist Gierke, and backed by several jurists including
Maitland.

Every organization has a genuine consciousness, a real will, and a real ability to act. That is the
presence of a group is more than just the sum of the individuals who form the group. This challenges
the Fiction theory and proposes that corporations possess a distinct existence and should be
recognized as genuine entities in their own right.

It argues that corporations have a tangible impact on society and the economy as they contribute to
economic growth, provide employment opportunities, and engage in various transactions and
activities.

Concession:

This theory is propounded by Savigny, Salmond, and Dicey. Its context is the sovereign state ideology.
This theory recognizes corporate personality as a concession or privilege granted by the state to
corporations.

According to this theory, states, in exchange for the contribution of corporations to society like
economic development, employment generation, and tax contributions, corporations are granted
special rights and privileges like the ability to own property and enter into contracts, etc.

This theory disputes the view that corporate personality is an inherent characteristic of corporations,
but rather a grant or concession from the state, which can be revoked if the corporations fail to fulfill
their societal obligations.

Purpose:

The principal proposer of this theory is a German Jurist, Brinz. According to this theory, a corporation
should be recognized as a legal entity only if it serves a valid social or economic process. It proposes
that a legal personality should be granted to a corporation based on its ability to contribute to the
public welfare, promote economic growth, and serve the interests of various stakeholders.

This theory also disputes the view that corporate personality is an inherent characteristic but
something that is awarded because of a valid reason or purpose.

Bracket:

This hypothesis was given by Ihering. As per this theory, legal individuality enables corporations to
perform more efficiently. The members of a corporation have specific rights that are delegated to the
company for commercial purposes.

Legal Rights
According to Austin, “A party has a right when another or others are bound or obliged by law to do
or forbear towards or in regard of him”

According to Ihering defined rights as “legally protected interests”. The law does not protect all such
interests. The interests of men conflict with one another and the law, is the rule of justice and protects
only certain interests.
Salmond defines right as an interest recognized and protected by a rule or justice. He says, for an
interest to be regarded as a legal right, it should obtain not merely legal protection but also
recognition.

Legal rights were defined by Holland as the “capacity residing in one man of controlling, with the
assent and assistance of the state the actions of others.”

Theories:

Will Theory: The Will Theory states that right is an inherent attribute of the human will. It says that
the purpose of the law is to allow the free expression of human will. This theory was advocated by
scholars like HEGAL, KANT, HUME

Interest Theory: The Interest Theory was proposed by the German Jurist, Rudolf von Ihering. IHRING
defined rights as legally protected interest. He asserts that the basis of legal right is “interest” and
“not will‖. The main object of law is protection of human interests and to avert conflict between
their individual interests.

Elements Of Legal Right

1. The Person of Inherence: It is also known as the subject of right. A legal right is always vested
in a person who may be distinguished, as the owner of the right, the subject of it or the
―person of inherence. Thus, there cannot be a legal right without a subject or a person who
owns it
2. The Person of Incidence: A legal right operates against a person who is under the obligation
to obey or respect that right.
3. Contents of the Right: The act or omission which is obligatory on the person bound in favour
of the person entitled
4. Subject matter of Right: It is something to which the act or omission relates, that is the thing
over which a right is exercised
5. Title of the Right:

Types of Legal Rights:

1. Antecedent & Remedial: It is vested within a person by law or any other legal manner;
violation or breach of the Antecedent rights gives rise to a sanctioning right or remedial
right.
2. Public & Private: Public rights are those vested with the state; A private right, is concerned
with individuals.
3. Positive & negative: A person possessing a positive right can compel the person with the
duty to perform a positive act; a negative right, corresponds a negative duty.
4. Vested & Contingent: A vested right is a right in respect of which all events essential to vest
the right in the owner have happened; while a contingent right is one in respect of which
only some of the events necessary to vest the right have happened.
5. Perfect & imperfect: A perfect right is one which corresponds to a perfect duty and a perfect
duty is one which is not only recognized by the law but is enforced also; hen in case of the
breach the right is not enforceable in a court of law then it is known as imperfect right.
6. Right in Rem & right in Personam: A right in rem means a right available against the whole
world whereas a right in personam is a right that is available only against specific number of
people.
7. Legal & Equitable: These types of legal rights cannot be found in India
 8. Proprietary & personal: Proprietary Rights are rights that are related to a person‘s property
whilst personal rights relate to one‘s body. Proprietary rights are transferable and personal
rights are not.
a. Types of Proprietary:
1. Right in re-propria: right in his own thing.
2. right in re-aliena: right in the property belonging to another
a. Lease
b. Security
c. Servitudes
d. Trusts

Possession & Ownership

“Possession” literary means physical control over a thing or an object. It expresses the closest
relation of fact that can exist between a thing and the person, who possess it. In law, possession
means it includes not only physical control over a thing but also an intention to exercise that physical
control. “Possession” literary means physical control over a thing or an object. It expresses the
closest relation of fact that can exist between a thing and the person, who possess it.

In law, possession means it includes not only physical control over a thing but also an intention to
exercise that physical control.

Salmond defines Possession as, "possession is the continuing exercise of a claim to the Exclusive use
of an object."

Savigny defines Possession as, "intention coupled with physical power to exclude others from the
use of material object.

Holmes defines Possession as, "To gain Possession a man must stand in a certain physical relation to
the object and to the rest of the world, and must have certain intent."

According to Ihering, "whenever a person looked like an owner in relation to a thing, he had
possession of it unless Possession was denied to him by rules of law based on practical convenience.

To constitute possession it is essential that following elements must be present, viz.

(1) “Animus possidendi ”, i.e. intention to possess and

(2) “Corpus possessionis” i.e. the thing is in actual possession.

Theories:

1. Savigny’s Theory of Possession

2. Ihering’s Theory of Possession
3. Salmond’s Theory
4. Holland’s Theory

Types of Possession

1. Corporeal Possession: Things in possession which are material or in existence eg land, house
2. Incorporeal Possession: possession of immaterial things. Eg. Patent, copyrights
3. Mediate Possession: possession through agent
4. Immediate Possession: possession acquires or gets directly or personally
5. Constructive Possession: possession in law, not in fact
6. Adverse Possession: It means holding the land on his own behalf of some other person
7. De facto Possession: De facto Possession exists where the thing is in the immediate
occupancy of a party
8. De Jure Possession: possession in law.
Mode of possession:

1. By taking: It is acquisition of the Possession without the consent of previous Possessor

2. By delivery: when a person takes possession with consent or co-operation of previous owner
3. By operation of law: possession taken under the operation of law.
 Ownership
Ownership involves the absolute rights and
legitimate claim to an object. It means to
own the object by the owner.
Ownership is the right of the owner against
the world indefinite in point of the user,
unrestricted in point of disposition or
destroying and unlimited in point of duration
over a thing
Ownership itself gives the owner the right to
possession.
The transfer of ownership is a technical and
long process and involves conveyance
Ownership is essentially a bundle of rights,
all rights in rem.
Possession
Possession is more the physical control of an
object. The possessor has a better claim to the
title of the object than anyone, except the
owner himself.
As per the definitions, it is the continuous
exercise of a claim to exclusively possess and
use the object/thing.
However, it does not indicate the right to
ownership.
Transfer of possession is fairly easier and less
technical.
It is not a right, just a prima facie evidence of
ownership