“Generally and broadly speaking, the corporate veil may be lifted where associated companies are inextricably connected as to be, in reality, part of one concern… given the facts obtaining presently, we are of the firm view that this was an eminently fit case for lifting the corporate veil, as EIL was the main driving force,” Supreme Court, in a significant ruling dated May 05, 2026, held that the corporate veil can be pierced to include the assets of subsidiary companies within the Corporate Insolvency Resolution Process (CIRP) of a holding company when such entities are inextricably connected.
A bench comprising Justice Sanjay Kumar and Justice Alok Aradhe observed that when subsidiaries are…