In Pakistan, the ability of an association to be sued largely depends on its registration status under the local laws. Associations, clubs, and societies often operate as unincorporated entities, which means they do not possess a separate legal entity distinct from their members. As a result, these unincorporated associations cannot typically sue or be sued in their own name. Instead, any legal action involving such entities usually implicates the office bearers or members directly involved in the matters at hand.
For instance, if an unincorporated association has entered into a contract, and there is a dispute, the legal liability generally falls upon the individuals who acted on behalf of the association. This is because, without formal incorporation, the association itself does not have the legal capacity to bear liability or be recognised as a separate entity in court proceedings.
However, if an association is registered under relevant laws, such as the Societies Registration Act, 1860, it may gain a certain degree of legal recognition, which allows it to sue and be sued as a corporate body. This registration provides the association with a distinct legal personality, thereby enabling it to engage in legal actions independently of its members.
For example, the Cooperative Societies Amendment Act, 2020, has provisions that facilitate the registration and regulation of cooperative societies, allowing them to function as legal entities capable of suing and being sued. This legal framework is designed to promote thrift, self-help, and mutual assistance among persons with common economic and social interests, thereby ensuring better standards of living and efficient management of collective resources.
Therefore, before initiating any legal action against an association, it is essential to ascertain its registration status. This due diligence can significantly impact the course of legal proceedings and the potential liability of the association and its members.
At Josh and Mak International, we provide comprehensive legal services to assist clients in navigating the complexities of legal actions involving associations. Our experienced team can help you verify the registration status of an association and provide expert guidance throughout the legal process.
If you require further assistance or have any queries regarding associations and their legal capacities, please feel free to contact us at [email protected].