Persons Disqualified by Law
Persons Disqualified by Law
1. Meaning
The term Persons Disqualified by Law refers to individuals who are not legally competent or eligible to perform certain acts, enter into contracts, or hold certain positions because of specific legal restrictions or disabilities.
This disqualification can arise from statutory provisions, constitutional restrictions, or court orders.
Such disqualification ensures protection of public interest, upholding justice, or preserving the integrity of legal or constitutional processes.
2. Contexts Where Disqualification Applies
Contract Law (Competency to Contract)
Election Law (Eligibility to contest elections)
Company Law (Eligibility to be a director)
Criminal Law (Disqualification from certain rights or offices)
Public Office (Holding certain government or constitutional offices)
3. Disqualification in Contract Law
Under the Indian Contract Act, 1872, a person is disqualified to contract if:
They are minor (under 18 years).
They are of unsound mind.
They are disqualified by any law (e.g., insolvent persons).
Key Points:
Contracts entered into by disqualified persons are void or voidable.
Purpose: Protect parties and public from entering into unenforceable agreements.
4. Persons Disqualified from Contesting Elections
The Representation of People Act, 1951, lays down certain disqualifications:
Persons convicted of certain offences.
Persons found guilty of corrupt practices.
Government contractors.
Persons holding certain offices of profit.
Insolvent persons.
Case Law:
Kihoto Hollohan v. Zachillhu (1992)
The Supreme Court upheld the power of the Parliament and State Legislatures to disqualify members under the Tenth Schedule (Anti-Defection Law).
It also clarified that the Speaker’s decision on disqualification is subject to judicial review on limited grounds.
5. Disqualification of Directors under Company Law
Under the Companies Act, 2013, certain persons are disqualified from becoming directors:
Undischarged insolvents.
Persons convicted of an offence involving moral turpitude or fraud.
Persons who have been found guilty of wilful violation of the Companies Act.
Persons declared disqualified by a court or tribunal.
Case Law:
Official Liquidator v. Rustom Cavasjee Cooper (1961)
The court held that a director declared insolvent cannot hold office during insolvency.
6. Disqualification Under Criminal Law
Convicted persons may be disqualified from voting, contesting elections, or holding public office for a period.
Certain offences carry disqualification as a punishment.
7. General Principles
| Ground of Disqualification | Purpose |
|---|---|
| Minor or Unsound Mind | Protect persons lacking capacity from binding contracts |
| Conviction or Criminal Record | Preserve integrity in public offices and electoral processes |
| Insolvency | Protect financial responsibility and trust in business |
| Legal Prohibitions/Statutory Law | Maintain rule of law and public policy |
8. Summary Table
| Category | Disqualified Persons | Effect/Consequence | Relevant Law |
|---|---|---|---|
| Contractual Capacity | Minors, persons of unsound mind, insolvents | Contracts void or voidable | Indian Contract Act, 1872 |
| Electoral Disqualification | Convicted persons, corrupt practice offenders | Disqualified from contesting elections | Representation of People Act, 1951 |
| Company Directors | Insolvents, convicted of fraud, disqualified by courts | Cannot be appointed/continue as directors | Companies Act, 2013 |
| Public Office | Convicted criminals, persons holding offices of profit | Disqualification from holding office | Various statutes |
9. Important Case Law Summary
| Case | Principle Established |
|---|---|
| Kihoto Hollohan v. Zachillhu | Speaker’s decision on disqualification subject to judicial review |
| Official Liquidator v. Rustom Cavasjee Cooper | Insolvent persons disqualified from directorship |
| M.C. Chockalingam v. Union of India | Disqualification applies to uphold integrity of public offices |
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