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In India, the enforcement of an arbitral award against alternative corporate entities owned by the judgment debtor is generally not permissible if the corporate entity
In India, the enforcement of an arbitral award against alternative corporate entities owned by the judgment debtor is generally not permissible if the corporate entity liable for the judgment as per the arbitral award is found to be nonexistent. This is because, under Indian law, each corporate entity is considered a separate legal entity and is liable only for its own debts. However, there are certain exceptions to this rule. For instance, if it can be proven that the nonexistent corporate entity was a mere alter ego or a sham used by the judgment debtor to evade its liabilities, the court may allow the enforcement of the award against the alternative corporate entities. This is known as 'lifting the corporate veil'. But such instances are rare and depend on the specific facts and circumstances of each case.
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