Injunction to corporation binding on its officer
Full Text
An injunction directed to a corporation is binding not only on the corporation itself, but also on all members and officers of the corporation whose personal action it seeks to restrain.
Plain English Summary
Lifts the corporate veil to clarify that an injunction issued against a corporation or company is directly binding upon its directors, managing officers, agents, and employees whose personal conduct it restrains.
Key Legal Elements
- Corporate Veil Lifted for Injunctions: Officers cannot take shelter behind corporate personality to evade injunction orders.
- Binding on Managing Directors & Executives: Binds all persons exercising administrative control or operational power.
- Rule 2A Liability: Individual officers who disobey the corporate injunction can be detained in civil prison under Rule 2A.
- Knowledge Prerequisite: Officer must have knowledge or notice of the injunction order.
Practical Note
Personal Contempt Liability of Corporate Directors: 1. Piercing the Corporate Veil: Rule 5 prevents corporate evasion where directors claim that the injunction was against the 'company' and not against them individually. In Aligarh Municipal Board v. Ekka Tonga Mazdoor Union (1970) 3 SCC 98, the Supreme Court held that officers responsible for running a corporate entity are personally liable for breach of injunction once notice of the order is served upon the corporation. 2. Service on Principal Officer: Injunction served on the registered office of the company or its legal counsel operates as effective legal notice to all executive officers carrying out corporate actions.
हिंदी पाठ
किसी निगम (Corporation/कंपनी) को निर्दिष्ट व्यादेश न केवल स्वयं उस निगम पर, बल्कि उस निगम के उन सभी सदस्यों और अधिकारियों पर भी आबद्धकर (Binding) होता है जिनके व्यक्तिगत कार्य को रोकने की वह चेष्टा करता है।