ARCHIVES
VOL. 12, ISSUE 1 (2026)
A research paper on lifting of corporate veil
Authors
Dr. Karan Singh Gaur, Sagar Bhamla
Abstract
The doctrine of separate legal personality,
established in Salomon v. Salomon & Co. Ltd. (1897) [1], forms
the cornerstone of modern corporate law by distinguishing a company as an
entity independent of its shareholders and directors. However, courts and
legislatures have recognized that this legal separation can be exploited to
commit fraud, evade contractual or statutory obligations, or perpetrate
injustice. In such circumstances, the principle of lifting or piercing the
corporate veil allows judicial authorities to disregard the corporate entity
and attribute liability directly to the individuals controlling the company.
This research paper critically examines the evolution, scope, and limitations
of this doctrine across common law and Indian jurisprudence, analyzing key
cases such as Gilford Motor Co. v. Horne, Jones v. Lipman, and landmark Indian
decisions including Life Insurance Corporation of India v. Escorts Ltd. and Delhi
Development Authority v. Skipper Construction Co. The study explores statutory
provisions, judicial trends, and emerging challenges—particularly in contexts
such as corporate group structures, insolvency proceedings, and economic
offences. Through doctrinal analysis and comparative evaluation, the paper
argues that while lifting the corporate veil serves as an essential tool to
ensure accountability and prevent abuse of corporate personality, judicial
intervention must be exercised with caution to maintain commercial certainty
and uphold the legitimacy of corporate autonomy. The research concludes by
proposing criteria for consistent application and suggesting a harmonized
framework for future judicial interpretation.
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Pages:137-144
How to cite this article:
Dr. Karan Singh Gaur, Sagar Bhamla "A research paper on lifting of corporate veil". International Journal of Law, Vol 12, Issue 1, 2026, Pages 137-144
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