Comment on the following: A company incorporated under the Companies Act, 2013, being an artificial person, is not entitled to sue a natural person or to sue another company incorporated under the same Act.

CS Executive · Company Law · PYQS · December 2015
Comment on the following: A company incorporated under the Companies Act, 2013, being an artificial person, is not entitled to sue a natural person or to sue another company incorporated under the same Act.

Answer & Explanation:

A Company is an artificial person created by law. It is recognized as a legal person, which, can enter into contracts, possess properties in its own name, sue and can be sued by others etc. It is capable of enjoying rights and being subject to duties. To sue means to institute legal proceedings against (a person) or to bring a suit in a court of law. All legal proceedings against the company are to be instituted in its name. Similarly, the company may bring an action against anyone in its own name. Hence a company is entitled to sue a natural person or to sue another company incorporated under the Companies Act, 2013 in its own name.

Topics: Company Law

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