Tag: Legal Entity

Supreme Court Clarifies: Trustees Can Be Sued for Dishonored Cheques, Even If Trust Is Not Named as Accused
24Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies: Trustees Can Be Sued for Dishonored Cheques, Even If Trust Is Not Named as Accused

This Supreme Court judgment holds that under the Negotiable Instruments Act, 1881, a Trust is not a juristic person capable of being sued. A complaint for a dishonored cheque issued on behalf of a Trust is maintainable against the Trustee who signed it, without needing to array the Trust itself as an accused. The ruling clarifies that vicarious liability attaches directly to the responsible Trustee. Facts Of The Case: The dispute arose from a financial arrangement concerning William Carey University. Facing a crisis, its sponsoring body, ACTS Group, entered an MoU with Orion Education Trust on 12.10.2017 to hand over the university's management. The Respondent, Vijaykumar Agarwal, was Orion's Chairman. In this capacity, he authorized the Appellant, Sankar Padam Thapa, to liaise wit...
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Supreme Court Landmark Ruling: Proprietor and His Business Are Not Separate Legal Entities
30Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Landmark Ruling: Proprietor and His Business Are Not Separate Legal Entities

The Supreme Court held that a proprietorship concern is not a juristic person and a suit filed against the proprietor personally is maintainable. Order XXX Rule 10 of the CPC is merely enabling and does not bar a suit against the proprietor, who remains the real party in interest for all transactions conducted in the trade name. Facts Of The Case: The appellants, owners of a property, leased it to Aditya Motors, a sole proprietorship concern of respondent Pilla Durga Prasad, via a registered lease deed. After the lease expired, the lessee failed to vacate, prompting the appellants to file an eviction suit. The original suit named the lessee as defendant no.1 (Aditya Motors), along with the sub-lessee and its directors. During the proceedings, the appellants amended the plaint, substituti...
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