Bhavya Singh, OP Jindal Global University
ABSTRACT
The research paper will talk about the doctrine of “lifting the corporate veil” which also stands as a combination of corporate law, governance, and jurisprudential considerations. The paper will further dive into the complex and ever-changing environment of the Indian Judiciary’s viewpoints on when the corporate veil can be broken.
On one side, it will uncover a consistent dedication to uphold the integrity of the corporate structure, advocating for restricted liability and also with reference to identify and its strict adherence with respect to corporate sector. While on the other side it will highlight the instances where judiciary has demonstrated to set aside the veil when it serves as a cover for fraudulent activities and acts of injustice. All these areas will be conducted through an analysis of case laws, provisions and scholarly discourse. Further, giving a comprehensive examination of the fundamental principles and contradictory opinions on the Indian legal system.
This research paper conducts a thorough analysis of the elements that impact judicial rulings concerning the piercing of the corporate veil. These factors encompass various aspects such as fraudulent behavior, inappropriate utilization of corporate entities, the idea of a company acting as a "proxy," and the necessity to safeguard the rights and concerns of minority shareholders and creditors.
Moreover, the study underscores the real-world consequences stemming from these conflicting principles on businesses, corporate governance methods, and the wider legal environment. In the process, this research work sheds light on the requirement for enhanced harmony and uniformity in the implementation of this theory within the context of Indian law.
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