Piercing the Corporate Veil.
Journal of Legal Studies and Research, Volume 7 Issue 1, ISSN 2455 2437.
12 Pages Posted: 28 May 2021 Last revised: 1 Jun 2021
Date Written: May 1, 2021
The paper gives a brief introduction to section 9 of the Companies Act 2013, and examines the concept of a company being treated as a separate legal entity. The purpose of this paper, however, is to illustrate the fact that Courts should be restrained from abruptly applying the doctrine of lifting the corporate veil and in turn disregarding the separate legal identity designated by the Companies Act 2013. The paper would further analyse the contentious judgement delivered by the Bombay High Court in Sir Dinshaw Maneckji Petit v Commissioner of Income Tax and in turn exhibit the arbitrary nature of Courts when dealing with lifting the corporate veil. The case pertains to the ambit and scope of the concept of a separate legal entity and comprises one of the few instances where the High Court has had the opportunity to lift the corporate veil. Additionally, the paper would provide an in-depth understanding of the arbitrary nature invoked by Courts while piercing the corporate veil and whether the same is disrupting the ease to do business.
Keywords: Corporate Veil, Companies Act 2013
JEL Classification: K19
Suggested Citation: Suggested Citation