The principle of separateness is no minor technicality. It lies at the heart of company law. The landmark 1896 ruling by the British House of Lords, in Salomon vs Salomon & Co, established that once incorporated, a company acquires its own legal identity, distinct from its shareholders, directors, or affiliates. This was more than a formalism; it unleashed the modern economy, shielding personal assets from business risks and allowing capital to move freely. India’s Supreme Court has affirmed this on many instances, underscoring that corporate separateness is not a legal fiction to be set aside for convenience, but a deliberate construct governing credit, liability, and risk.
The IBC reflects this. It treats companies as distinct legal…
