Principle Of ‘Alter Ego’ Or ‘Piercing Corporate Veil’ Not The Basis For ‘Group Of Companies’ Doctrine: Supreme Court
Case: Cox and Kings Ltd v. SAP India Pvt Ltd
Coram: Chief Justice of India DY Chandrachud, Justice Hrishikesh Roy, PS Narasimha, JB Pardiwala and Manoj Misra
Case No.: ARBIT. PETITION No. 38/2020
Court Observation: “The principle of alter ego disregards the corporate separateness and the intentions of the parties in view of the overriding considerations of equity and good faith. In contrast, the group of companies doctrine facilitates the identification of the intention of the parties to determine the true parties to the arbitration agreement without disturbing the legal personality of the entity in question,”
“Therefore, the principle of alter ego or piercing the corporate veil cannot be the basis for the application of the group of companies doctrine,”
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