Supreme Court of India

Delhi Development Authority v Skipper Construction Co (P) Ltd

1996 INSC 61919961 min read
The case in brief30-second read
Facts
Skipper Construction, controlled by Tejwant Singh, defaulted on a DDA auction and sold space in a building to many purchasers, using family companies to hide assets.
Issue
Whether the court could lift the corporate veil to reach the controllers' assets.
Held
The veil was lifted. Tejwant Singh, his family and their companies were treated as one, and their properties were attached and sold to reimburse defrauded purchasers, using Art.142 to do complete justice.
Principle
The corporate form cannot be used as a cloak for fraud; courts will look behind it to the persons in control.
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Facts

  • Skipper Construction, controlled by Tejwant Singh, defaulted on a DDA auction and sold space in a building to many purchasers, using family companies to hide assets.

Issue

  1. Whether the court could lift the corporate veil to reach the controllers' assets.

Held

  • The veil was lifted. Tejwant Singh, his family and their companies were treated as one, and their properties were attached and sold to reimburse defrauded purchasers, using Art.142 to do complete justice.

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Citation

Delhi Development Authority v Skipper Construction Co (P) Ltd 1996 INSC 619

Reported: https://indiankanoon.org/doc/1336921/. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.