Apollo Group Inc. and Ors. v. K.K. Modi Investment and Financial Services Pvt. Ltd. and Ors. - (High Court of Delhi) (17 Aug 2015)

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

MANU/DE/2294/2015

Civil

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