Can the STATE (corporation de-facto) be a LAWFUL party to a case? If so.. HOW?

There is so much crazy in this question that I don't know where to begin. Are you trying to say that the government in your country is illegitimate? That's a very round-a-bout and insane way to do that, and it doesn't even make any sense. Put down the bong, pop a few haldol, get a nice good nap and then come back to try this question later.