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Report No. 110

35.18. Non-commercial corporations.-

Some difficulty is created by the word "association", in relation to non-commercial corporations. For example, does this word cover a University? This question arose before the Allahabad High Court a few years ago. The High Court held that the Banaras University was a "corporation", but was not an "association", because a corporation having a separate identity from its members cannot be called a mere "association" of individuals1-2.

The Allahabad High Court also cited an English case3, where James, L.J., had regarded "company" and "association" as synonymous. The Allahabad case actually related to section 236, but is equally applicable to section 223, the wording in both sections (so far as is material) being the same.

A similar view seems to have been taken by the Oudh4 Chief Court, and (impliedly), by the Calcutta High Court5.

1. Benaras Hindu University v. Gauri Dutt, AIR 1950 All 196.

2. Bagchi Principles of the Law of Corporations, Tagore Law Lectures, (1914), pp. 253-259 referred to.

3. Smith v. Anderson, (1880) 15 Ch D 247 (273).

4. Benaras Hindu University v. Krishan Das, AIR 1920 Oudh 124 (Benaras Hindu University).

5. Jitendra Nath Palit v. Lokendra Nath Palit, AIR 1916 Cal 295.

The Indian Succession Act, 1925 Back

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