Tagged “separate-legal-personality”

3 articles on separate-legal-personality.

Bacha F. Guzdar v. CIT, Bombay: a shareholder is not a part-owner of the company's assets

The foundational Indian application of the Salomon principle — a shareholder owns shares, not the company's property, and the agricultural character of a tea company's income does not pass through to dividends in the shareholder's hands.

Valkya Editorial·14 Jun 2026·8 min

Landmark JudgmentSupreme Court of India

Balwant Rai Saluja v. Air India: the strict test for lifting the corporate veil

A three-judge bench laid down a strict, impropriety-based six-fold test for piercing the corporate veil, holding that canteen workers engaged through a wholly-owned subsidiary were not workmen of the parent company.

Valkya Editorial·14 Jun 2026·8 min

Landmark JudgmentSupreme Court of India

LIC v. Escorts: corporate veil, shareholder democracy and the limits of judicial review

A five-judge Constitution Bench delivered a foundational statement on separate corporate personality, the narrow grounds for lifting the corporate veil, and the shareholder's right to requisition a meeting irrespective of motive.

Valkya Editorial·14 Jun 2026·8 min