Juristic Person: Meaning, Examples, and Related Court Judgements

A juristic person is an entity that is treated by law as if it were a person. It allows an organization to sue and be sued and enter into contracts. It will enable it to own property even though it comprises many people. Corporations, companies, non-profit organizations, trade unions, and government bodies are all examples of juristic persons. They have legal rights and duties separate from natural persons. A legal framework treats them as individuals to enable them to function effectively.

This topic is important for UPSC IAS exams. It is an important topic coming under the Polity Subject. In this article, we shall study meaning, examples and various court judgements regarding the Juristic Person.

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Meaning of Juristic Person

A juristic person is a legal entity recognized by the law and has the same rights and responsibilities as a human being. A juristic person, often referred to as a "legal person" or "artificial person," is a concept in law that recognizes certain entities or organizations as having legal rights and obligations similar to those of a natural person (a human being). In essence, a juristic person is a legal fiction created by law to enable non-human entities to participate in legal and commercial activities. 

In Shiromani Gurdwara Parbandhak Committee vs Som Nath Dass and Others (2000), the Supreme Court said: “The very words Juristic Person connote recognition of an entity to be in law a person which otherwise it is not. In other words, it is an artificially made person, not an individual natural person, who is to be recognized as such in law.”

The two types of legal entities are: human and non-human.

• In legal terminology, a natural person refers to a human being, and at times, it's also called a physical person. Natural persons possess the capacity to assume responsibilities and exercise legal rights.
• Entities treated similarly to humans are categorized as legal persons for legal purposes. These legal entities carry rights and responsibilities, including the ability to initiate or defend legal actions and the capacity to own and transfer property.
• Legal persons often act through guardians or representatives, particularly when they cannot express their intentions directly.
• Historically, courts have granted juristic personhood to various entities, including gods, corporations, rivers, and even certain animals.
• A juridical person, sometimes called a juridic, juristic, artificial, or legal person, encompasses non-human entities with legal recognition and standing.

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Examples of Juristic Person

Some of the examples of juristic persons include the following:

Deities

The British were the first to treat deities as legal entities. Temples possessed vast amounts of land and resources, and British administrators believed that the deity was the legal owner of the treasure.

Court Judgements

• The Dakor Temple case in 1887 gave Hindu idols the status of the juristic person.
• Bishwanath and Anr vs Shri Thakur Radhaballabhji & Ors (1967) - The Supreme Court declared that if a shebait fails to perform their duties adequately, a devotee can petition the court as a “friend of the god.”
  • However, not all gods are legal entities. Only after an idol’s public appearance is he or she granted this rank.
• Yogendra Nath Naskar vs Commissioner of Income Tax (1969) - Not all idols qualify as ‘juristic persons,’ but only when they are consecrated and set in a public area for the benefit of the general public.”
• Justice D Y Chandrachud in the Sabarimala judgment - Granting deity a legal status doesn’t mean it has all constitutional rights.

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Animals

The Punjab and Haryana High Court has awarded animals legal entity status.

Court Judgements

The corporations, Hindu idols, holy writings, and rivers have been recognized legal entities. To preserve and promote higher welfare of animals, including avian and aquatic, animals are conferred with legal entity/legal person status.

Corporations

The Supreme Court, in a landmark Judgment, ruled Corporations are legal entities that are distinct from stakeholders.

Court Judgements

Tata Engineering & Locomotive Company Ltd., V State of Bihar - The Supreme Court ruled in this decision that a corporation is a stable and continuing legal entity.

Rivers

The Uttarakhand High Court regarded legal entity status as “Ganga and Yamuna Rivers.”

Court Judgements

The Supreme Court overruled the verdict of the Uttarakhand High Court. However, the Maori community’s sacred Whanganui River was awarded legal status.

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Conclusion

• Thus, it is apparent that incorporation was significant since it bestows legal personality on nonliving entities such as corporations, institutions, and other organizations, which aids in deciding their rights and responsibilities.
• Because they have legal personalities, these non-living people can own, utilize, and sell property in their names.
• This benefit is denied to unregistered institutions since their existence is not distinct from their members.

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