Friday, 27 March 2015

When court can lift corporate veil in case of employer and employee relationship?

It is well settled that the court can lift the veil, look to the conspectus of factors governing employment, discern the naked truth though concealed intelligently. The court has to be astute in piercing the veil to avoid the mischief and achieve the purpose of law. It cannot be swayed by legal appearance. The court’s duty is to find out whether contract between the principal employer and the contractor is sham, nominal or merely a camouflage to deny employment benefits to the workmen.
Supreme Court of India
Balwant Rai Saluja & Anr Etc.Etc vs Air India Ltd.& Ors on 13 November, 2013
Citation; 2014 ALLSCR3311
Bench: Chandramauli Kr. Prasad, V. Gopala Gowda
Read original judgment here;click here

           
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