11 November 2019


Judgments

High Court of Delhi

Apollo Group Inc. and Ors. v. K.K. Modi Investment and Financial Services Pvt. Ltd. and Ors.

MANU/DE/2294/2015

17.08.2015

Civil

Court can lift corporate veil to determine common business goal and privity of interest

The corporate veil can be lifted by the Court in “diverse circumstances” to determine the true nature of a company or a group of companies. The Appellant had challenged the determination in a previous judgment that its subsidiaries were subject to a non-compete clause in an agreement for providing educational services between the holding company and the Respondents. Noting that the previous court was assessing if there existed a cause of action against the subsidiaries of the Appellants, the High Court found it sufficient reason to lift the corporate veil.

Relevant

Liverpool and London S.P. & I Association Limited v. M.V. Sea Success I & Anr MANU/SC/0951/2003
State of UP v. Renusagar Power Corporation MANU/SC/0505/1988
Juggi Lal Kamlapat v. C.I.T. MANU/SC/0091/1968

Tags : Corporate veil subsidiary agreement

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