DELHI DEVELOPMENT AUTHORITY versus SKIPPER CONSTRUCTION COMPANY (P) LTD.

DELHI DEVELOPMENT AUTHORITY versus SKIPPER CONSTRUCTION COMPANY (P) LTD.

The Supreme Court, under Article 142 and its equitable jurisdiction, has the power to pierce the corporate veil and attach property belonging to contemnors and their family members used as a device for fraud, to ensure restitution for persons defrauded despite absence of enabling statutory provision. The fruits of contempt should not be enjoyed, and technical objections yield to constitutional powers. Monies for reimbursement should come from attached properties and not from DDA, whose previous orders remain final.

Parties
Applicant: Delhi Development Authority; Respondent: Skipper Construction Company (P) Ltd.; Contemnor/individual Party: Tejwant Singh (TS); Contemnor/individual Party: Surinder Kaur (SK); Family Member/individual Party: Prabhjit Singh
Jurisdiction
India
Judgment Date
06 May 1996
Procedural Posture
Special Leave Petition (civil) / Disposition of Interlocutory Applications; Post Contempt Proceedings
Outcome
Applications disposed. Several directions issued for restitution and attachment of property.
Legal Topics
Article 142 Power to Do Complete Justice, Lifting the Corporate Veil, Restitution for Fraud, Attachment of Property, Piercing the Corporate Veil, Orders Under Constitutional Powers, Contempt Proceedings, Restoration of Defrauded Victims
Constitutional Law Company Law Contempt of Court Article 142 Power to Do Complete Justice Lifting the Corporate Veil Restitution for Fraud Attachment of Property Piercing the Corporate Veil +3 more

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Parties

Delhi Development Authority

Applicant

Skipper Construction Company (P) Ltd.

Respondent

Tejwant Singh (TS)

Contemnor/individual Party

Surinder Kaur (SK)

Contemnor/individual Party

Prabhjit Singh

Family Member/individual Party

Procedural Posture

Special Leave Petition (civil) / Disposition of Interlocutory Applications; Post Contempt Proceedings

Legal Issues

  1. 1 Whether the Supreme Court can order restitution for persons defrauded by an auction purchaser in the absence of a statutory provision under Article 142
  2. 2 Whether the corporate veil should be lifted to attach properties of family members used as devices for fraud
  3. 3 Whether contempt powers under Articles 129 and 142 allow overriding technical and procedural objections in doing justice

Ratio Decidendi

The Supreme Court, under Article 142 and its equitable jurisdiction, has the power to pierce the corporate veil and attach property belonging to contemnors and their family members used as a device for fraud, to ensure restitution for persons defrauded despite absence of enabling statutory provision. The fruits of contempt should not be enjoyed, and technical objections yield to constitutional powers. Monies for reimbursement should come from attached properties and not from DDA, whose previous orders remain final.

Court Disposition

Applications disposed. Several directions issued for restitution and attachment of property.

Orders

  • Property at No. 3, Aurangzeb Road, New Delhi to be attached (or remain attached).
  • Embassy of Israel, as lessee, to deposit monthly rent into Supreme Court, which discharges its obligation to pay landlord.