The corporate veil must be lifted if it is in the interest of justice. It is the outmost duty of courts to provide justice and it is up to the judiciary to decide whether it is the need of the hour or not.
In this case the veil of corporate entity was used to give effect to an illegal transaction by dividing it into two separate transactions. It was held that the lessee privately and unauthorizedly cannot sell its rights for consideration and profits from rights belong to State as it is an illegal transfer.
This article discusses the meaning and scope of Force Majeure under Indian Law to examine if Covid-19 pandemic situation is one of such events. This article also discusses the relevant recent case laws.
