In Brief
The Estate Officer of Chandigarh allotted six acres of land to Esys Information Technologies Pvt. Ltd. under rules prohibiting transfer for ten years. In 2008, the administration discovered that the company had transferred a major shareholding to another company without permission. The Supreme Court held that despite formal preservation of the allottee company name, the transaction effectively transferred control and assets in violation of restrictions. The respondent suppressed material facts about a subsequent Teledata transaction. The Court lifted the corporate veil to examine the true substance of the transactions and upheld the land resumption, allowing the appeal.
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