DISTINGUISH BETWEEN NATURAL PERSON AND JURISTIC PERSON WITH EXAMPLE.

 

DISTINGUISH BETWEEN NATURAL PERSON AND JURISTIC PERSON WITH EXAMPLE. 

 

Introduction

 

In Jurisprudence, it is expressly stated that there are two kinds of person recognized by law and they are natural person and juristic person. Therefor it can be said that person is genus while natural person and juristic persons are its species. Below, the meaning definition and overall concept of person are explained in detail.

 

Person

 

v Meaning-

 

The word ‘Person’ has been derived from the Latin word ‘persona’. This term has a long history. At the beginning, the word persona simply used mean a mask. Later on, persona was used to denote the part played by a man in his life. Next to that, the very word was used to denote the man who played the part. Later, in Roman Law, the term became synonymous with the term caput. A slave had an imperfect persona. Lastly, the term was used in the sense of a being who is capable of sustaining rights and duties.

 

v Definition-

 

Many definitions of the term ‘person’ have been given by various jurists and writers, for example-

 

Salmond has stated that a person is any being whom the law regards as capable of rights and duties. Any being that is so capable is a person, whether a human being or not and no being that is not so capable is a person, even though he is a man.

 

According to German Writers, will is the essence of a personality. A legal person is one who is capable of will. Zitelmann has stated in this regard that Personality is the legal capacity of will. The bodiliness of men is for their personality a wholly irrelevant attribute.

 

v Concept-

 

A person is not necessarily a human being. There may be human beings who are not persons in the eye of law. For example, slaves were not persons in the legal sense as they did not have rights. Similarly, there may be persons who are not human brings; for example- a Corporation. According to Hindu Law, idols are legal persons. Although they have a personality in the eye of law, they are not human beings.

 

The term ‘person’ is not defined in the Indian Constitution. But Article 367 of the Constitution provides that the definitions contained in the General Clauses Act, 1897 apply for the interpretation of the Constitution. It s to be noted that the definition of ‘person’ as provided under Section 3(42), General Clauses Act is undoubtedly illustrative and not exhaustive.

 

DISTINGUISH BETWEEN NATURAL PERSON AND JURISTIC PERSON WITH EXAMPLE

 

As mentioned above, two kinds of persons are recognized by law. Those are Natural Persons and Juristic Persons. Let us now, differentiate between Natural Person and Juristic Person:

 

    I.         Definition-

 

According to Holland, a Natural Person is such a human being as is regarded by the law as capable of rights and duties- in the language of Roman Law, as having a status. According to another writer, natural persons are living human beings recognized as persons by the State.   

 

The first requisite of a normal human being is that he must be recognized as possessing a sufficient status to enable him to possess rights and duties. The second requisite of a normal human being is that he must be born alive. Moreover, he must possess essentially human characteristics.

 

Legal or Juristic persons are real or imaginary beings to whom personality is attributed by law by way of fiction where it does not exist in fact. Juristic persons are also defined as those things, mass of property, group of human beings or an institution upon whom the law has conferred a legal status and who in the eye of law capable of having rights and duties as natural persons.

 

 II.         Creation-

 

Only living human beings who are naturally created by God can be regarded as natural person.

 

Creation of Juristic Person involves the case of double fiction. By one fiction, the juristic person is created or made an entity. By second fiction, it is clothed with will of a living being. Therefore, Juristic Person comes into existence when there is in existence a thing, a mass of property, an institution or a group of persons and the law attributes to them the character of a person. This may be done as a result of an act of the sovereign or by a general rule prescribed by the Government.

 

III.         Life span-

 

Natural Persons are normal human beings who have limited span of lifetime. Even with the advancement of science and technology in the modern era, the life of a Natural Person is uncertain and limited. As per general Presumption, he cannot live more than100 years.

 

The life of a juristic person on the other hand is certain since, its origin can be decided by selecting as to when the Law shall attribute character of a person to a thing, mass of property, institution etc. Similarly, the legal personality attributed to it can be taken away at a selected time. Also, Juristic person is beyond the natural phenomenon like Death. Therefore, life of Juristic Person is certain and unlimited. For example, East India Company was established in sixteenth century in London, and now still in existence.

 

IV.         Fundamental Rights and Duties-

 

A Natural Person possesses Status or Personality sufficient enough to confer upon him various fundamental rights and duties in any legal system all around the world.

 

It is true that Juristic Persons possess certain rights and duties in the eye of law. But they do not possess fundamental rights and duties like Natural Persons. Also, Salmond has commented that the rights and duties of Juristic Persons are not their own but the rights and duties conferred upon an artificial person ultimately represents the interests and benefits of natural persons.

 

  V.         Representation-

 

Natural Person has power of thought, speech and choice. Natural Person is represented by himself and he is able to perform his legal functions.

 

Juristic Person has no such power of thought, speech and choice. Juristic Persons perform their functions through Natural Person only. Therefore, Juristic Persons is always represented by Natural persons.

 

VI.         Varieties-

 

There are no different varieties of Natural Person.

 

In the eye of Law, there are mainly three kinds of Legal or Juristic Persons, which are- Corporations, Institutions and Funds or Estate.

 

VII.         Capacity of Creating-

 

Natural Persons are capable of creating Juristic Persons.

 

Juristic Persons are not capable of creating Natural Persons.

 

VIII.         Examples-

 

Examples of Natural Persons are human beings who are capable of rights and duties in the eye of Law.

 

Examples of Juristic Persons are limited companies having millions of shareholders all across the world, Corporation Sole like offices of the Postmaster-General, the Minister of Health, the Minister of Agriculture, Auditor-General of India etc.

 

Hence, the distinguishment between Natural Person and Juristic Person stands discussed.

Can a Juristic Person be a Citizen of India? To know this with the help of relevant case laws please check this link.

References:

 

Websites-

 

·      iPleaders Blog ( https://blog.ipleaders.in/ )

 

·      Legal Service India (  https://www.legalserviceindia.com/ )

 

·      Indian Kanoon ( https://indiankanoon.org/ )

 

Books-

 

·      ‘Jurisprudence & Legal Theory’ by V. D. Mahajan.