1930 (1) TMI 13 - HC - Companies Law

Summary

Issues:
1. Whether an unincorporated association can sue for libel.
2. Whether subsequent incorporation of an association affects its right to sue.
3. Whether one member can sue on behalf of other members in a libel case.
4. Whether the second respondent had the right to sue on behalf of the Federation members.
5. Assessment of damages in a libel case.

Analysis:
1. The judgment addresses the issue of whether an unincorporated association can sue for libel. The court refers to the case law and concludes that an unincorporated association, such as the "Federation," cannot be libelled as an association since it is not a legal person and cannot suffer damage by reason of a libel. Therefore, the "Federation" as an unincorporated association could not sue for libel.

2. The judgment also discusses the impact of subsequent incorporation on the association's right to sue. It is determined that an incorporated association, as such, cannot sue for an injury done to its members before it was incorporated. Therefore, the incorporation of the association after the publication of the libels does not enable the President of the incorporated association to sue on behalf of the association or its members.

3. The court examines whether one member can sue on behalf of other members in a libel case. It is noted that the suit does not purport to be a representative action under the relevant rule, and permission of the Court was not sought. The court considers the wording of the rule and concludes that the second respondent was not entitled to sue on behalf of the incorporated "Federation" or the members of the unincorporated "Federation" who were members at the time of the alleged libels.

4. The judgment delves into the issue of whether the second respondent had the right to sue on behalf of the Federation members. The court analyzes relevant legal precedents and rules and determines that the second respondent was not entitled to sue on behalf of the members of the Federation based on the wording of the rule and the lack of precedent in similar cases in India.

5. Lastly, the judgment addresses the assessment of damages in the libel case. It is concluded that the libels were not serious and that nominal damages, along with costs, would suffice to indicate that there was a libel and that the second respondent's character was cleared of any cloud cast by the libels. The court awards nominal damages of ten rupees to the second respondent with costs on that amount.

This comprehensive analysis of the judgment provides insights into the legal principles applied by the court in determining the issues related to libel and the rights of unincorporated associations in such cases.