CA Intermediate · Corporate and Other Laws · Interpretation of Statutes
A section of an Act prescribes that a person who commits a specified offence 'shall be punishable with imprisonment which may extend to two years'. The Act contains a separate section saying the definition of 'person' includes a body of individuals. Vikram Traders, a registered partnership firm with partners including Kavita, is charged. Applying the General Clauses Act, 1897 definition of 'person', what is the correct position?
The firm can be treated as a person. The General Clauses Act, 1897 says 'person' includes any company, association or body of individuals whether incorporated or not, unless the context requires otherwise. It is therefore not limited to natural persons or to registered companies.
- A'Person' includes any company, association or body of individuals, whether incorporated or not, unless the context requires otherwise, so the firm can be treated as a personCorrect
- B'Person' means only a natural human being, so the firm cannot be charged
- C'Person' includes a company but never an unincorporated body
- D'Person' is limited to artificial juridical persons registered under the Companies Act, 2013
Explanation
The General Clauses Act defines 'person' to include any company or association or body of individuals, whether incorporated or not. This applies unless the context requires otherwise. Hence the unincorporated firm can be a 'person'. Limiting it to natural persons or to companies contradicts the definition.
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