RAJIV GANDHI NATIONAL UNIVERSITY OF

LAW, PUNJAB

ROUGH DRAFT OF
CORPORATE LAW

TOPIC: LIFTING UP OF THE CORPORATE

VEIL- AN ANALYSIS OF INDIAN AND ENGLISH
LAWS.

Submitted to Submitted By

Mr. Rajat Dixit Shubham Pandey

Assistant Professor of Roll Number: 19003

Law Group 2
 1. INTRODUCTION
The doctrine of lifting the corporate veil means ignoring the corporate nature of the body of
individuals incorporated as a company. . A company is a juristic person, but in reality it is a
group of person who are the beneficial owners of the property of the corporate body. Being an
artificial person, it (company) cannot act on its own, it can act only by natural persons. The
doctrine of lifting the veil can be understood as the identification of the company with its
members.

A. History of the English Doctrine

1. 1897-1966- This period may be called as the classical veil lifting or the early
experimentation period, during which the English courts experimented with different
approaches of the doctrine. The House of Lords decision in Salomon’s case
dominated in this period.

B. History of Indian Law

C. Need in the present Scenario
D. Jurisprudence behind the Doctrine

2. PROVISION OF INDIAN COMPANY LAW (1956

and 2013 act included)
The Companies Act 1956, itself provides for circumstances, when corporate veil will be
lifted and the individual members or directors will be made liable for certain transactions

A. Companies act 2013

B. Failure to the return application money
C. Misrepresentation in prospectus
D. Fraudulent conduct
 E.
4. JUDICIAL APPROACH
Bacha F. Guzdar v. Commissioner of Income tax, Bombay

Union of India and others v. Playworld Electronics Pvt. Ltd. & Ors

A. Determination of the character of the company

B. Fraud or Improper conduct

C. Avoidance of welfare legislation

D. Economics Offences

5. COMPREHENDING THE VODAPHONE

CONTROVERSY
6. CONCLUSION
7. BOBLIOGRAPHY