Reviewed case brief

Life Insurance Corporation of India v. Escorts Ltd.

AIR 1986 SC 1370

The Supreme Court held that while a company has a separate legal personality distinct from its members, the corporate veil can be pierced where the corporate form is used as a cloak for fraud or to defeat public interest. The court laid down the circumstances under which separate personality may be

lifting-corporate-veilseparate-legal-entityfraudpublic-interest
Court
Supreme Court of India
Year
1986
Subjects
Jurisprudence, Company Law
Reviewed
2026-06-30

Rule established

The corporate veil may be lifted where the corporate entity is used as a device for fraud, improper conduct, or to defeat public interest

Facts

    Issues

      Held

        Ratio decidendi

        How to use it in an exam

        Editorial source

        Supreme Court Reports

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