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TMI Blog2009 (1) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... an be allowed in view of the contradictory stands taken by defendant Nos. 2 and 3 in their written statements. Furthermore, the said amendment is necessary to decide the real controversy between the parties and will not prejudice the parties if allowed at this stage. Consequently, the plaintiff is allowed to amend the plaint and to include the plea of lifting of the corporate veil. - I.A. NO. 14928 OF 2007 AND C.S. (OS) NO. 186 OF 2007 - - - Dated:- 19-1-2009 - MANMOHAN SINGH, J. Pankaj Gupta for the Appellant. Dinesh Agani, Anil Sapra and Rajesh Pathak for the Respondent. JUDGMENT 1. By this order, I shall dispose of the two applications being I.A. No. 14928 of 2007 (under Order VI, rule 17 of the CPC) in C.S. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g paragraph at the end of paragraph No. 14 of the plaint : "In view of conduct and contradictory claims stated by defendant Nos. 2 and 3 described above and the facts and circumstances of the case, plaintiff pleads and applies for lifting of corporate veil of defendant-company for holding defendant Nos. 2 and 3 liable personally to claim in suit." 5. From the bare reading of the plaint in paragraphs 8, 9 and 10, it can be gauged that there are allegations of fraud made against defendant No. 2 and defendant No. 3 whereby the personal liability of defendant No. 2 and defendant No. 3 is sought. It is stated in the paragraph 8 of the plaint that defendant No. 2 had withdrawn under "self cheques", a sum of Rs. 208 lakhs from the account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the concept of the corporate veil can be invoked by the courts when there is case of fraud, misrepresentation, diversion of funds Singer India Ltd. v. Chander Mohan Chadha [2004] 122 Comp. Cas. 468 (SC). 11. In Palmer s Company Law (24th edition) in Chapter 18, paragraph 2 onwards some instances have been given in which the modern company law disregards the principle that the company is an independent legal entity and also when the courts would be inclined to lift the corporate veil. The important ones being in relation to the law relating to trading with enemy where the test of control is adopted and also where the device of incorporation is used for some illegal or improper purpose. In Gower s Principles of Modern Company Law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opportunity to establish his case. 14. In Sarbjyot Kaur Saluja v. Rajender Singh Saluja AIR 2008 (NoC) 891 (Delhi), it was observed that : "The power to allow the amendment is wide and can be exercised at any stage of the proceedings in the interests of justice on the basis of guidelines laid down in various precedents. This is no more res integra that the purpose and object of Order 6, rule 17 is to allow either party to alter or amend his pleading in such manner and on such terms as may be just but it is equally true that the amendment cannot be claimed as a matter of right and under all circumstances. However, the courts while deciding prayer for amendment should not adopt a hyper-technical approach and liberal approach sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sought to be incorporated by way of amendment are not to be adjudged at the stage of allowing prayer for amendment Rajesh Kumar Aggarwal v. K.K. Modi [2006] 4 SCC 385 and Lakha Ram Sharma v. Balar Marketing (P.) Ltd. [2006] 2 SCALE 363. 16. In view of the above discussion, I hold that the inclusion of the plea of piercing of the corporate veil will not change the nature and character of the case and the cause of the action, it is merely elaborative plea which can be allowed in view of the contradictory stands taken by defendant Nos. 2 and 3 in their written statements. Furthermore, the said amendment is necessary to decide the real controversy between the parties and will not prejudice the parties if allowed at this stage. Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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