# Corporation Workers' Union v. T.N

- **Citation:** (2002) 3 ILRA 824
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2002-09-06
- **Bench:** S.K. Sen, C.J. Ashok Bhushan
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/corporation-workers-union-v-t-n-40012
- **Pages:** 2

## Headnote

Constitution
of
India,
Article
226-
Recovery
Proceeding-
against
the
Director
of
company-
Electric
dues
Rs.95,99,446/- plea about corporate
body- avoiding personal liability- held-
not available- court declined to interfere.

Held - Para 15

Hence we are of the opinion that so far
as electricity dues are concerned this
Court will pierce the veil of corporate
personality and shall not give shelter to
the businessmen who seek protection
under
the
doctrine
of
corporate
personality.

## Text

http://www.allahabadhighcourt.nic.in
824 INDIAN LAW REPORTS ALLAHABAD SERIES [2002
liquor shop near his shop. The apex court
specified three categories of persons, visà-vis, locus standi (i) a person aggrieved
(ii) a stranger and (iii) a busybody or a
meddlesome interloper. It was held that
any one belonging to third category is
easily distinguishable and such person
interferes in the things which do not
concern him as he masquerades to be a
crusader of justice. Petition by such
person has to be rejected at the very
threshold. The instant case squarely falls
in the third category. Not a single
entrepreneur from the industrial estate has
come forward to complain about the
project, in question. Supreme Court, has
very clearly held in T.N. Civil Supplies
Corporation Workers' Union Vs. T.N.
Civil Supplies Corporation Ltd. and
others- (2001) 4 SCC-469, Vinay Kumar
V. State of U.P. (2001) 4 SCC-734 Union
of India Vs. Alok Kumar Dass- (2001)
9SCC-297 that a person shall have no
locus standi to file writ petition if he is
not personally affected by the impugned
order or his Fundamental Rights have
neither been directly or substantially
invaded nor is there any imminent danger
of such rights being invaded or his
acquired interests have been violated
ignoring the applicable rules. The relief
under Article 226 of the Constitution is
based on the existence of a right in favour
of the person invoking the jurisdiction.
The exception to the general rule is only
in cases where the writ applied for is a
writ of Habeas Corpus or Quo Warranto
or instituted in the public interest. In
Nilangekar Patil (supra), the apex court
stressed the necessity to cleanse public
life. It equated the pollution in values and
standards as equally grave as pollution in
the environment. Thus, Nilangekar Patil
(supra) too is of no assistance to the
petitioners.

13. We also find ourselves unable to
accept the argument of Sri Singh, learned
Senior Advocate that the present is a case
of 'malace of law'. Sri Singh has sought to
distinguish between 'malice of fact' and
malice of law'. In this behalf, paragraph
28 of the writ petition is relevant wherein
it has been alleged by the petitioners that
the Minister was won over and, therefore,
the Minister with a mala fide intention
and for extraneous consideration favoured
the respondent no. 7 with the impugned
letter dated 27.8.2000. Use of words' won
over' 'mala fide intention and ' extraneous
consideration' can only mean 'malice in
fact' and not 'malice in law'. It is precisely
because of this reason that Mr. Lalji
Tandon
has
been
impleaded
as
a
respondent in the writ petition. Had it
been a case of 'malice in law', there was
absolutely no need to implead Mr.
Tandon in the instant case.

14. Considering the facts and
circumstances of the case, noted as
aforesaid, we are of the view that there is
no merit in the writ petition. The writ
petition,
accordingly,
fails
and
is
dismissed without any order as to costs.
---------
ORIGINAL JURISDICTION
CIVIL SIDE
DATED:ALLAHABAD 6.9.2002

BEFORE
THE HON'BLE S.K. SEN, C.J.
THE HON'BLE ASHOK BHUSHAN, J.

Writ Tax No. 2447/2002

Manoharlal

...Petitioner
Versus
Bhoora

 ...Respondent
http://www.allahabadhighcourt.nic.in
3 All] Manoharlal V. Bhoora 825
Counsel for the Petitioner:
Sri M.R. Jaisawal

Counsel for the Respondent:
S.C.

Constitution
of
India-
Article
226-
Release of vehicle- Demand notice for
Rs.2,16,971/-
undertaking
given
for
deposit of entire amount within two
weeks as per direction of the Court- if
the entire amount is deposited to the
satisfaction of the concerned authority
as per direction- the vehicle in question
be released during pendency of the writ
petition.

Held- Para 3

The writ petitioner undertakes to pay
demanded dues of Rs.2,16,971, (Two Lac
Sixteen thousand Nine hundred Seventy
one) in cash and balance Rs.1,00000/-
(one lac) by way of Bank guarantee and
further Rs.1,00000/- (one Lac) by any
other security to the satisfaction of
respondent no. 3.

(Delivered by Hon'ble S.K. Sen, C.J.)

1. Sri M.R. Jaisawal Advocate
appears for writ petitioner. Sri S.P.
Kesarwani learned Standing Counsel
appears for State respondents.
Admit.

2. Counter affidavit to be filed
within two weeks. Rejoinder affidavit
may be filed within one week thereafter.
List the mater after four weeks.

3. The writ petitioner undertakes to
pay demanded dues of Rs.2,16,971, (Two
Lac Sixteen thousand Nine hundred
Seventy one) in cash and balance
Rs.1,00000/- (One Lac) by way of Bank
guarantee and further Rs.1,00000/ (one
Lac) by any other security to the
satisfaction of respondent no. 3 in respect
of each vehicle within two weeks. In the
event of compliance of such direction
there shall be stay of the demand notice
dated 6.8.2002 (Annexure 1 to writ
petition) and the vehicles in question shall
be released. In default of compliance of
the directions within two weeks as stated,
the interim stay shall stand automatically
vacated.
---------
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 24.9.2002

BEFORE
THE HON'BLE M. KATJU, J.
THE HON'BLE K.N. SINHA, J.

Civil Misc. Writ Petition No. 37833 of 2002

Sanjay Kumar Gupta

...Petitioner
Versus
District Magistrate, Fatehpur and others

 ...Respondents

Counsel for the Petitioner:
Sri H.N. Singh

Counsel for the Respondents:
S.C.

Constitution
of
India,
Article
226-
Recovery
Proceeding-
against
the
Director
of
company-
Electric
dues
Rs.95,99,446/- plea about corporate
body- avoiding personal liability- held-
not available- court declined to interfere.

Held - Para 15

Hence we are of the opinion that so far
as electricity dues are concerned this
Court will pierce the veil of corporate
personality and shall not give shelter to
the businessmen who seek protection
under
the
doctrine
of
corporate
personality.