Whether a pvt ltd entity is a person who can be described as experienced and expert person?

Kishor Satwick (Querist) 24 April 2012 This query is : Resolved
In case of redevelopment of old housing societies, the Government of Maharahstra has issued a Notification that has binding effect. One of the clauses governing the appointment of Architect/Engineer as Project Management Consultant is as follows:

“Before convening the said meeting, Society should obtain list of Architects / Project Management Consultants on the panel of Government / Local Authority and obtain quotations from minimum 5 experienced and expert persons for preparing project report for redevelopment work of the building and one expert person from among them will be selected in the Special General Body Meeting.”

The underlined and material words are “experienced and expert person”. They essentially and necessarily refer to a living human being or a partnership firm of relevant human beings.

The questions therefore are:

1. Whether a private limited company incorporated under the Companies Act, 1956 be said to be ‘experienced and expert person’ as contemplated under the said mandatory provision.

2. It is well settled legal position that private limited company is an artificial juridical person and has separate and distinct legal existence from its shareholders and directors. Hence, if the private limited company is incorporated by a qualified engineer with his housewife as the other director, can the said company be said to be satisfying the condition that it is an ‘experienced and expert person’?

3. Whether appointment of such private limited company be in violation of the mandatory requirements as stated above?

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Raj Kumar Makkad (Expert) 24 April 2012
1. Yes. Company/firm etc. are also juristic persona and have similar status as of an individual human being.

2. No. The experience and expertise represents the qualities of a human being and not of a company/firm which is a juristic person. status of juristic person and having personal characteristics are two different things.

3. Yes.

prabhakar singh (Expert) 24 April 2012
True it is an artificial juristic person.

But assignments of expertise can be given to it if co. has employees or directors who rendering personal service to company can full fill contract assignments allotted to the co. by any third party.