MOHAMMAD AHMAD ANSARI vs INTERGLOBE COMMERCE PAKISTAN (PVT — 2023 CLD 570 KARACHI-HIGH-COURT-SINDH

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MOHAMMAD AHMAD ANSARI VS INTERGLOBE COMMERCE PAKISTAN (PVT.) LTD. Doctrine of separate legal entity---Lifting of "veil of incorporation"---Scope---Number of circumstances are by now recognized as grounds for lifting the veil of incorporation, including the circumstance where the arrangement between the company and the shareholders is such which makes the business, the business of the shareholders---At the same time, actual instances of lifting the veil of incorporation are few and far between---Whether the Court lifts the veil of incorporation or not, actually depends on the facts and circumstances of each case. Citation Name: 2023 CLD 570 KARACHI-HIGH-COURT-SINDHBookmark this Case MOHAMMAD AHMAD ANSARI VS INTERGLOBE COMMERCE PAKISTAN (PVT.) LTD. S. 12---Civil Procedure Code (V of 1908), O. XXXIX, Rr. 1 & 2---Suit for specific performance of agreement---Interim injunction, grant of---Lifting of "veil of incorporation"---Scope---Plaintiff claimed that the Company, a family-owned business, violated an Undertaking that entitled each brother to a 25% share in Company's assets---Despite entrusting control to a brother (defendant), the plaintiff alleged that the defendant failed to uphold the agreement---In 2005, the company sold its 'Islamabad property' and divided the proceeds among the brothers---Subsequently, they agreed to sell the 'Clifton property', but a lawsuit arose due to a delay in the sale agreement---Ultimately settled in 2018, the buyer deposited funds with the Court for release to the Company---Plaintiff sought his rightful share, filing a lawsuit to halt the release of funds deposited with the Court and to enforce the Undertaking---Validity---Plaintiff had prima facie demonstrated that the Company and its shareholders had acted upon the Undertaking by treating the immovable assets of the Company as the joint assets of the brothers---But what still remained to be seen was whether that practice of the parties was sufficient justification for a Court of law to ignore the corporate personality of the Company so as to enforce the Undertaking against the Company---Answer to such question would in turn determine the ownership of the sale proceeds of the Clifton property lying with the Court---Till such time, the plaintiff had made out an arguable case for preserving the sale proceeds---Application was disposed of by restraining the Company from obtaining release of sale proceeds. Citation Name: 2023 CLD 570 KARACHI-HIGH-COURT-SINDHBookmark this Case MOHAMMAD AHMAD ANSARI VS INTERGLOBE COMMERCE PAKISTAN (PVT.) LTD. Doctrine of separate legal entity---Lifting of "veil of incorporation"---Scope---Instances of piercing or lifting the veil of incorporation are by way of an exception to the general rule that at law a company is a person separate and distinct from its shareholders. Citation Name: 2023 CLD 570 KARACHI-HIGH-COURT-SINDHBookmark this Case MOHAMMAD AHMAD ANSARI VS INTERGLOBE COMMERCE PAKISTAN (PVT.) LTD. S. 304---Partnership Act (IX of 1932), S. 44---Petition for winding up of Company---Dissolution of partnership by the Court---Scope---In a particular case the principles of dissolution of partnership may be applied if the apparent structure of the private limited company is not the real structure and on piercing the veil of incorporation the Court finds that in reality it is a partnership. Citation Name: 2023 CLD 570 KARACHI-HIGH-COURT-SINDHBookmark this Case MOHAMMAD AHMAD ANSARI VS INTERGLOBE COMMERCE PAKISTAN (PVT.) LTD. Doctrine of separate legal entity---Scope---Identity of a company as a juristic person and consequently its assets are separate from the identity and assets of its shareholders.

MOHAMMAD AHMAD ANSARI vs INTERGLOBE COMMERCE PAKISTAN (PVT — 2023 CLD 570 KARACHI-HIGH-COURT-SINDH

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