Honble Supreme Court in BALWANT RAI SALUJA V. AIR INDIA LTD (2014) 9 SCC 407 The doctrine of piercing the veil allows the court to disregard the separate legal personality of a company and impose liability upon the persons exercising real control over the said company. However, this principle has been and should be applied in a restrictive manner, that is, only in scenarios wherein it is evident that the company was a mere camouflage or sham deliberately created by the persons exercising control over the said company for the purpose of avoiding liability. The intent of piercing the veil must be such that would seek to remedy a wrong done by the persons controlling the company. The application would thus depend upon the peculiar facts and circumstances of each case. News Courtsey: Indian Lawyers Forum
Posted on: Sat, 01 Nov 2014 12:21:39 +0000
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