SYNOPSIS

BY AMAN KOTHARI

TOPIC – Applicability of Lifting of the Corporate Veil in the Present Context – Critical Analysis
Format
• Introduction
• Research Methodology
• Aims and Objectives
• Hypothesis
• Research Questions
• Mode of Citation
• Main Body
• Suggestions
• Conclusion
Through this Research Project I want to understand the idea of Lifting of the Corporate Veil and
how it has developed over the years . Apart from it I also want to understand that how the idea of
a Corporation having a Separate Legal Entity is harming the peace of the society with massive
increase in Crimes like: Fraud, Ponzi Schemes, Offshore Accounts, etc. Through this Research I
want to help in coming up the solution in resolving the problem of Corporate Crimes and I also
want to be upto date with the present thesis of the Principle of Lifting of the Corporate Veil.
Aim and Objective
The Aim and Objective of the Research is to see the timeline of Lifting of Corporate Veil starting
from English Law to applicability in the Present Legal System in India. Further, to understand how
does the Lifting of Corporate Veil works and to understand it’s debacle with the basic concept of
Corporate Principle like Separate Legal Entity and it’s applicability. Also to seek how much
relevancy does Motive or Intention plays role in bringing out the guilt.
Research Hypothesis
The feature of a Corporation to have a Separate Legal Entity from the people who are actually
responsible for the decisions of the Corporation is ensuring massive increase in White Collar
Crimes. Therefore, there is a need to get away with the principle of Separate Legal Entity of a
Corporation to ensure better accountability of the actions by a Corporation and as a result it would
also solve the problem of Lifting the Corporate Veil.
Research Questions
• Whether a Corporation should have its own Separate Legal Entity?
• Whether there should be more accountability for the people actually responsible for the
decisions of a Corporation?
 • Whether the Lifting of Corporate Veil should be an Exception or a Rule?
• Whether the Motive or Intention are Relevant in Lifting the Corporate Veil?
Case Laws
• Soloman v. A. Soloman and Co. Ltd.
• Ben Hashem v. Ali Shayif
• Lee v. Lee's Air Farming Ltd.
• Life Insurance Corporation of India v. Escorts Ltd. And others
• Delhi Development Authority v. Shipper Construction
• The Engineering Locomotive Co. Ltd. v. State of Bihar and Others
• Formosa Plastic Corporation Ltd. v. Kiran Contractors Private Ltd.
• Bhatia Industries v. Asian Natural Resources and Anr.
• State of U.P. v. Renusagar