New Delhi: The Apex Court on 5th April stayed the Delhi High Court February 28 order asking the Associated Journals Ltd (AJL) to vacate the National Herald House building here. Chief Justice Ranjan Gogoi headed bench issued notice to the Centre's Land and Development Office on the plea of AJL who is the publisher of the newspaper.
Also Read: Amid row over Wayanad, Rahul Gandhi files his nomination
Rejecting the Associated Journals’ request for stopping the government from taking any "coercive steps" to vacate the office premises at Herald House in the national capital, the High Court said that it is just another case for them. However, the government asked the SC to look in the matter taking into consideration the concept of "corporate veil". "The question we have to decide is whether the transfer of shares amounts to transfer of lease", the court said.
Earlier in February, the government had told the High Court since past 10 years, no press had been functioning in the premises, rather it is being used solely for commercial purpose which amounts to violation of its lease. In October last year, the government had scrapped the publisher's 56-year-old lease for the building in ITO area of Delhi.
What is Corporate Veil exactly?
Corporate Veil is a concept which states that the rights and duties of a corporation are responsibility of that company alone. In other words, the company is responsible for its conduct and not any individual person. "Veil" acts as a separation between the legal entity of a corporation and the real people who invest their money or efforts into its operations. Whereas ‘Piercing the corporate veil’ refers to a legal decision which can allow the court to treat the rights or duties of a corporation as the rights or liabilities of its shareholders. In other words, this would mean that individuals can be held responsible for the acts of the company.
Sneek-a-peek
National Herald corruption case has been filed by Indian economist Subramanian Swamy against Congress President Rahul Gandhi and his mother Sonia Gandhi. Reportedly, Associated Journals Limited took an interest free loan from the Indian National Congress and that it was unable to repay same. Later on a company named Young India was incorporated in November 2010 in which Rahul and Sonia became the major shareholders. Swamy has alleged that the mother-son duo has misappropriated the funds of the company.