510 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
§ PERSON
The word “person” according to the General Clauses Act includes any company or association or body of individuals whether incorporated or not.
That the word person includes a “juristic person” such as a corporation was a long established view. But it is now made clear by a special proviso which was added to Section
5 of the T. P. Act in 1929.
A corporation, which has power to acquire and hold land has also impliedly power to mortgage it for purposes of carrying out the object for which it was created. The powers of statutory corporations are generally speaking regulated by the act of incorporation, but where borrowing is necessary for the purposes of the corporation, it is not forbidden by the T. P. Act because it is a “person”.
By Hindu Law an Idol is recognized as a juristic person capable of holding property.
31 I. A. 203.
But the possession and management of the property of the idol are vested in the Sebait. But as the ownership belonged to the idol and as the idol is a juristic person and therefore a living person, it can be a party to the mortgage.
§ REQUIREMENTS AS TO CAPACITY FOR CONTRACT
- This is dealt with in Section 7. Two things are necessary under Section 7.
(i) Person must be competent to contract,
(ii) Person must be entitled to transferable property or authorized to dispose of transferable property.
(i) § COMPETENT TO CONTRACT
Section 4 says that the Chapters and Sections of the T. P. Act which relate to contracts shall be taken as part of the Indian Contract Act.
Competency to contract must therefore mean competency in accordance with the Contract Act.
Section 11, Every person is competent to contract who is of the age of majority according to the law to which he is subject, and