2003 CLC 547 (AP) ::(2003) 5 ComLJ 94 ::(2003) 56 CorLA 146 ::(2004) 100 FacLR 691 ::(2003) 2 LabLJ 798 ::(2003) 2 AndhLD 392 ::(2003) 117 ComCas 340 ::(2003) 103 FJR 862

Andhra Pradesh High Court

Hon'ble Judge(s): V. V. S. Rao , J

(A) Companies Act (1 of 1956) , S.34— Lifting corporate veil - Whenpermissible - Holding company and subsidiary company - Separate entities - Question whether workers and employees of subsidiary company can be treated as those of holding company - Determination of - Lifting corporate veil held not permissible in facts of present case. Constitution of India , Art.19— The company incorporated under the Companies Act is entirely different from its shareholders. It has its own name, seal and assets. It is distinct juristic person inviolable personality. Whether it is a holding company or subsidiary company, this fundamental principle of company law does not get obliterated. It remains always same. Both the companies remain distinct and independent of each other though in the case of holding company and subsidiary company the former may to some extent be interdependent of the later and vice versa. The doctrine of lifting the veil is applicable in the case of holding company and subsidiary company. The same, however, is not universal principle. To a limited extent, in certain situations, the holding company was held omnipotent in the affairs of the subsidiary. (Para 11) In company law, separate legal entity of incorporated body, has to be maintained for reasons more than one. Nonethele....