The court held that Mr. Lee and the company he had formed were separate entities, and it was possible for Mr. The following case is similar to Salomon and Lee, but the principle of separate personality worked to the disadvantage of the plaintiff. Battle v Irish Art Promotion Centre Ltd The defendant company was involved in legal proceedings but did not have enough money for legal representation.
The court held that while a human person can represent him or herself in court, a legal person such as a company can only be represented by a solicitor or barrister, buy benzac ac gel 10. However, although the principle of separation is central to company law, there are a number of situations when the company and its members can be identified together and treated as the same.
State Trading Corporation of India Ltd. AIR SC It was held that As soon as citizens form a company, the rights guaranteed to them by article 19 1 c has been exercised and no restraint has been buy on the right and no infringement of that right is made.
Once a company or corporation is formed, the business which is carried on by the such company or corporation is the business of that company gel corporation and is not the business of the citizens who get the company or corporation incorporated and the rights of the incorporated body must be judges on that footing and cannot be judged on the assumption that they are the rights attributed to the business of individual citizens.
AIR SC The court held that the income-tax authorities were entitled to pierce the veil of corporate entity and to look at the reality of the transaction to examine whether the corporate entity was being used for tax evasion.
In benzac case, a separate corporate entity was brought into existence outside the taxable territory with the ulterior motive of evading the tax obligation by the assessee mills, buy benzac ac gel 10.
The Supreme Court observed: But in certain exceptional cases the Court is gel to lift the veil of buy entity and to pay regard to the economic realities behind the legal facade. For example, the Court has power to disregard the corporate entity if it is used for tax evasion or to circumvent tax obligation. He sold the land and timber to a company he formed and received as consideration all the fully paid shares.
The company carried the business buy felling and milling timber. A fire destroyed all timber which benzac been felled. Macaura had gel insured the timber against loss of by fire in his own name. He had not transferred the insurance policy to the company. Macaura owned a tree plantation.
The plantation was covered by an insurance policy. He subsequently sold the plantation to a company of which he was the only shareholder, through the purchase money remained owing to him, buy benzac ac gel 10. After the sale, Macaura buy to insure the plantation in his own name. A fire broke out and destroyed the plantation. When Macaura attempted to claim on the policy, the company refused to pay.
The issue was whether Macaura had an insurable interest at the gel of the loss. benzac
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