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2016 (9) TMI 967 - HC - Companies LawLifting of corporate veil - whether the concept of lifting of corporate veil was available even in execution proceedings and whether any interference was called for in the finding recorded by the learned Single Judge? - Held that:- The concept of removing corporate veil is applicable not only in the cases of holding of subsidiary companies or in the case of tax evasion but can be equally applied in execution proceedings.We are therefore of the view that the corporate veil can be lifted in cases where the Court from the material on record comes to the conclusion that the Judgment Debtor is trying to defeat the execution of the Award which is passed against him. In our view, the learned Single Judge was justified in carrying out that exercise. We concur with the view taken by the learned Single Judge. The learned Single Judge has considered all the circumstances which indicate that Mr. Surinder Singh Bhatia and his members of his family had created several corporate bodies and they were controlled by Mr. S.S. Bhatia and his family and therefore the learned Single Judge has rightly come to the conclusion that they had to be treated as one single entity as they were being used as cloaks behind which Mr. Surinder Singh Bhatia and his family were using the devise of incorporation as ploy adopted for preventing execution of the international award which was passed against BIL and in favour of Respondent No.2 Vitol.. It has to be noted that the learned Single Judge proceeded to examine the material on record which indicated that the BILL and the BIL was a single entity and has come to the said conclusion after piercing the corporate veil of both the companies. It has to be noted that the learned Single Judge proceeded to examine the material on record which indicated that the BILL and the BIL was a single entity and has come to the said conclusion after piercing the corporate veil of both the companies. Learned Single Judge was justified in lifting the corporate veil in this case and was further justified in coming to the conclusion that BILL and BIL was a single economic entity. No interference is called for in the order passed by the learned Single Judge
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