Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
OF SWATANTRA
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R 22,
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Written Submission on behalf of Respondents.
TABLE OF CONTENTS.
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Written Submission on behalf of Respondents.
INDEX OF AUTHORITIES.
I. Cases:-
Bank of America v Whitney Cent Nat. Bank, (1923) 261 U.S. 171. 14
Bergenthal v State Garage & Trucking Co, (1922) 179 Wis. 42. 15
Lowendahl v. Baltimore and O.R. Co, 240 App. Div. 762(N.Y. App. Div. 1933). 15
Ford and Carter Ltd. V Midland Bank Ltd., (1979) 129 NLJ 543. 16
a. Sam Elson, Legal Liability of Holding Company for Acts of Subsidiary Companies,15
Law Review.
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Written Submission on behalf of Respondents.
STATEMENT OF JURISDICTION.
It is humbly submitted that the petitioner has approached the Honble Supreme Court of
Swatantra invoking its jurisdiction under Article 32, 129 and 142 of the Constitution of
Swatantra.
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Written Submission on behalf of Respondents.
STATEMENT OF FACTS.
1. The kingdom of great barrier has colonized half of the world and was sought to give
independence to all the colonized territory one by one. The kingdom has signed
customary international law. The Kingdom of the Great Barrier sought to identify
legislations mandated all the independent territories to recognize UDHR as well as all
2. The state of Paratantra and Swatantra got independence on 14th and 15th August 2007
respectively. Both the States in Art 3 of their written constitution accepted all
international treaties and conventions which kingdom of great barrier has ratified.
3. Animal worship was historically prevalent in both the nations but their belief system
was different. The people of Paratantra believed in monotheism while the people of
god (half whale half human form of deity), the people of Swatantra worshipped all
4. HydroCarbon Petroleum Group Ltd. [HPGL] was a multinational company which has
been existed over hundred years and both the countries were promoters of the
company. Majority of shares were concentrated with Swatantra. Due to this reason at
the time of independence HPGL choose recognize its main registered office in
5. There was a dispute relating Paliata Spot, from where best whale sightings happen.
Therefore the kingdom of great barrier intervened and decided that the spot would be
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Written Submission on behalf of Respondents.
6. About three hundred years ago, on the eve of the Palikattu (a festival which was
celebrated around winter solstice and it was believed that during this period the sprit
of whale God comes to bless the peoples on Paliata Spot) Paratantras sighted a whale
calf dying near dolphins which caused great discomfort to the peoples Paratantras.
kill all dolphins on Pallikattu. What began as a religious edict, over the years turned
into a worship method for the Paratantras and a nightmare for dolphins. Therefore
every year a group of expert fishermen were selected and the catch the dolphins using
pipe mallet method. The contract for manufacture of steel pipe and mallet was with
Metal Carbon Technology Pvt. Ltd. A fully owned and fully funded subsidiary of
8. Swatantra over year have opposed Daiji worship mehod but Paratantra have cited
religious reason and the use of dolphin food in response. Due to high killing of
dolphins commercial entities saw great market for processing of dolphin meats in the
area. Due to high profit and easy availability of raw materials, Bio Carbon Pvt. Ltd,
Paratantra involved in meat processing industry also established a unit in that area.
9. Permission were given to several companies in Swatantra for exploration of oil and
natural gas in 2011, but due to close connection with the government of Swatantra
HPGL gained highest no. of contracts. In early 2012 HPGL got permission to
10. HSI, an organisation working for protection and welfare of animals all over the world
acts as a registered society in Swatantra. HSI made thorough investigation into the
higher sightings and found out that to appease people, the President of Swatantra had
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Written Submission on behalf of Respondents.
directed its armed forces to herd marine mammals especially whales and dolphins to the
Swatantra side. For this purpose various equipment were employed by Swatantra Navy.
But the equipment during its final stages went out of control and all the sea mammals
went to Paratantra side. HSI filed a petition in 2012 praying for mandamus against
government to proscribe the use of Seismic guns. The Supreme Court granted
mandamus recognizing that sesmic guns may cause harm to marine life. This did not
deter HPGL and they started importing equipments for exploration of natural
resources. The Court was again petitioned, but the Government cited this in their
national interest.
11. During festival of pallikattu 2015 no whale sightings happened which caused loss to
the tourism industries and affected the economy of the country. Environmentalist all
over the world blamed both the countries and their greedy corporate for this
extermination of animals.
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Written Submission on behalf of Respondents.
ISSUES RAISED.
1. Whether HPGL and its subsidiaries are single entity in the instant matter?
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Written Submission on behalf of Respondents.
SUMMARY OF ARGUMENTS.
1. HPGL and its entity are different in the instant matter.
It can very well be derived from the facts under the present matter that Metal Carbon
Technologies Pvt. Ltd. and Biocarbon Pvt. Ltd. are wholly owned and wholly funded
subsidiaries of Hydrocarbon Petroleum group Ltd. HPGL and its subsidiaries are different
entities in law, and therefore corporate veil cannot be pierced and neither the extra-territorial
application of Swatantra law can be there. Also HPGL is not responsible under Swatantra law
2. The technology used in excavation and exploration of oil and natural resources
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Written Submission on behalf of Respondents.
ARGUMENTS ADVANCED
I. HPGL and its subsidiary are separate entity in the instant matter.
1. It can very well be derived from the facts under the present matter that Metal Carbon
Technologies Pvt. Ltd. and Biocarbon Pvt. Ltd. are wholly owned and wholly funded
subsidiaries of Hydrocarbon Petroleum group Ltd. From the above derivations two
A. HPGL and its subsidiaries are different entities in law, and therefore corporate veil
cannot be pierced and neither the extra-territorial application of Swatantra law can be
there.
B. HPGL is not responsible under Swatantra law for acts or omissions of its subsidiaries.
A. HPGL and its subsidiaries are different entities in law, and therefore corporate
veil cannot be pierced and neither the extra-territorial application of Swatantra
law can be there.
2. Limited liability in a company form of organizations just after the origination gained
importance at a fast rate and has been deeply embedded in various legislations all over
the world. HPGL has its subsidiaries incorporated in Paratantra to carry on business in
an absolutely varied industry with an aim to take advantage of the doctrine. The
company, the increased facility of financing and marketing of securities, the non-
particular state, and the economy and efficiency of unified control and among the
features of the holding company plan.1 It should not be noted that if there is a wholly
funded and wholly owned subsidiary then its legal existence as a separate entity
cannot be denied. It is reasonable derivation from the words wholly owned and
wholly funded that there would be identical directors and due to voting rights, a
1
Sam Elson, Legal Liability of Holding Company for Acts of Subsidiary Companies,15 Washington Law
Review, 334
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Written Submission on behalf of Respondents.
certain control would be existing between the subsidiary and the parent. But, the fact
that the shares of one company belong to another does not make the subsidiary a mere
shareholders, identity of officers, the manner of keeping books and records, the
and officers, the method of conducting the business is very much differentiated. A
subsidiary can be run as a mere department only in situations where in the same form
of business is being conducted but both the subsidiaries of HPGL are carrying out
varied kinds of businesses that is unassociated with the parents. Further as the facts
of the present matter dictate, that subsidiary Metal Carbon Technology Pvt. Ltd. in the
own name contracted for the manufacture of steel pipes and mallets. Nowhere the
information that of parent companys representation can be acquired from the facts.
3. An ownership or controlling interest does not in itself define the parent and the
subsidiary as a single entity. The ownership of all or majority of the stock of the
persons of all or majority of stock of both companies does not result in itself in a
merger of the two corporations4 or liability of one for the acts of other.5 Also, even if
for the identity in management in itself does not mean assimilation of the two
activities.6
4. In Stone v. C.C.C. & St. L. Ry.,7 the parent company owned majority of stock, several
of the executive officers and directors of the companies were same and even the
2
Henry W. Ballantine, Separate Entity of Parent and Subsidiary Corporations, 14 California Law Review, 19.
3
Ibid.
4
Gramophone and Typewriter Ltd v Stanley, [1906] 2 K.B. 856.
5
Supra Note 1 at pg. 341.
6
Stone v. C.C.C. & St. L. Ry, (1911) 202 N.Y.352, 95 N.E.816.
7
Ibid.
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Written Submission on behalf of Respondents.
offices were in the same building. But there was no single entity awarded due to
evidence showing that the subsidiary made its own contracts, kept its own accounts
and parents major interest was in dividend return in its stock. The facts are identical
to the present matter. HPGL had only interest with regard to the dividend return and
all the contracts were in name of the subsidiaries and third parties without any
involvement of HPGL.
5. Therefore it is contended that the parent company, i.e., HPGL and its subsidiaries are
separate entities for all purposes of prosecution before the law, and the corporate veil
cannot be pierced.
Swatantra law. Here, Metal Carbon Technologies Pvt. Ltd. and Biocarbon
Technologies Ltd. Are the subsidiaries incorporated in Paratantra and therefore they
7. A foreign corporation can be personally served with the process only when it is doing
business within a state.8 The subsidiaries are incorporated and are functioning in the
state of Paratantra and all their acts are in accordance to separate legal system and
8. In Cannon Mfg. Co. v. Cadahy Packing Co.9, the technical existence of a subsidiary
was observed by keeping separate books and any transaction between the parent and
the subsidiary was represented by the entries. The court held that a subsidiary
corporation which owns and controls it, is a separate entity so that the foreign
8
See, Riverside etc. Mills v Menefee, (1915) 237 U.S 189.
9
Cannon Mfg. Co. v. Cadahy Packing Co., (1925) 69 L. Ed.
10
Supra Note 2, at Pg no 13
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Written Submission on behalf of Respondents.
9. Therefore even if the argument that the subsidiary was a mere adjacent is accepted
and considered then also a separate entity title has to be observed and preserved,
Metal Carbon Technologies Pvt. Ltd. and Biocarbon Pvt. Ltd. being foreign
subsidiaries of HPGL.
10. The extra-territorial application of legal system can be there when the parent
foreign corporation flows from the fact that the corporation itself does business in the
state in such a manner, and to such an extent that its actual presence there is
established.11
11. HPGL, being an oil company cannot practically establish its presence on behalf of its
subsidiaries since they are immersed in different industries. Further the facts provide
that the contract for manufacture of instruments was with Metal Carbon Technologies
Pvt. Ltd. And there was no sort of facts which aim at showcasing actual presence of
HPGL in Paratantra.
B. HPGL is not responsible under Swatantra law for acts or omissions of its
subsidiaries.
12. It has already been established that HPGL and its subsidiaries are separate entities and
based on that there cannot be any liability of HPGL for acts of its subsidiaries. The
subsidiaries are being managed as separate companies and all the finances are being
managed since both the subsidiaries are earning adequate profile so as to sustain itself
without support of the parent company. Thus where subsidiary is adequately financed,
maintains a separate organization with separate transactions, the parent will not be
held liable for the tort of the subsidiary though they occupied the same building, and
11
Bank of America v Whitney Cent Nat. Bank, (1923) 261 U.S. 171.
12
Bergenthal v State Garage & Trucking Co, (1922) 179 Wis. 42.
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Written Submission on behalf of Respondents.
13. When HPGL and its subsidiaries are engaged in distinct industries with their working
environment in different jurisdiction, then it can very well be inferred that no liability
would arise for HPGL. Further the working environment and legal standards within
which both the subsidiaries were functional was that of Paratantra, and their acts were
in accordance with the laws of Paratantra. No violation of laws and lawsuits existed
thereof.
14. In the case of Lowendahl v. Baltimore and O.R. Co.13 three clauses were laid down-
1. Control, not mere majority or complete stock control but complete domination.
3. The aforesaid control and breach of duty must proximately cause the injury.
15. None of the above laid clauses were met in the present matter. Nowhere did the facts
suggest that there was any kind of control apart from owning of 100% stock. No fraud
Paratantras law. A Parent company could be held as direct obligor for the acts of
1. Where the affiliated corporations are held out to public as single enterprise.
2. If the parent represents it stands behind or considers itself liable for the
obligations.
contract.14
16. An appropriate conclusion from the facts can be obtained that HPGL did not present
itself as a single enterprise as of subsidiaries. Neither did it take responsibility for the
acts nor did it wake the third parties believe that HPGL was involved in the contract.
13
Lowendahl v. Baltimore and O.R. Co, 240 App. Div. 762(N.Y. App. Div. 1933).
14
William J. Rands, Domination of a Subsidiary by a Parent.
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Written Submission on behalf of Respondents.
17. Finally it is argued that liability should not be there as the creditors are involved if
18. In the comments of Lord Wilberforce in Ford and Carter Ltd. 15 When creditors
become involved as they do in the present case, the separate legal existence of the
19. If a parent corporation is held liable for the obligations of its subsidiary the
shareholders of the parent are hurt through the lowering of the value of their
investment 16.Therefore with regard to the above arguments the parent company
II. The technology used in excavation and exploration of oil and natural
resources should not be banned.
20. The technique and instruments employed by hydro-carbon group limited although has
should not be banned since it is the only viable technique available worldwide to meet
the growing demand of oil and its products. [A] Economic development in any nation
requires powering of industry and there by oceans became huge source of oil reserves.
Seismic surveying is a vital part of exploring oil and gas which is critical to producing
the energy required in the businesses and homes with oil fields and wells present on
land rapidly being depleted and reaching the saturation point. [B]
There is definitely no need for professing why oil is important for any economy or for
the mankind. Without seismic survey oil wells would have to be dug up or large scale
15
Ford and Carter Ltd. V Midland Bank Ltd., (1979) 129 NLJ 543.
16
William P. Hack, & Tracy G Benson, Shareholder Liability for Inadequate Control.
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Written Submission on behalf of Respondents.
drilling would have to take place that happened at massive rates in U.S. states such as
Texas during Standard Oil. This caused destruction of the whole landscape. It would
have been very much expensive to have drilled through the sea-bed which could have
information accurate plan locations for wells, reduction in probability of drilling dry
wells and consequently the need for further drilling can be there.17
22. Before providing any agreement as to why the technique should be banned, it has to
be understood how the seismic gun functions. In seismic surveying, sound waves are
mechanically generated and sent into the earth. Some of this energy is reflected back
to recording censors, measuring devices that record accurately the strength and time it
has taken for this energy to travel through the various layers in the earths crust and
back to location of sensors18. These recordings are converted into visual images which
23. Now when it comes down to the environment and marine life, in over three decades of
world-wide seismic surveying, there is no evidence to suggest that sound from E&P
seismic activity has resulted in any physical and auditory injury in any marine
mammal species19.
24. The physical (auditory) effects are Temporary Threshold Shift (TTS) and Permanent
Threshold Shift (PTS). Research has found that TTS didnt occur in beluga whale
until exposure levels of 226 dB were reached. This sound limit within approx, tens of
meters of an air gun array PTS can only occur due to repeated TTS failure which
17
Environmental Benefits of Seismic Surveys, IAGC, available at
http://www.iagc.org/uploads/4/5/0/7/45074397/iagc_1_pager_sesimic_benefits_final_approved_2014-
th
06_12.pdf Last Visited on 28 July 2016
18
An Overview of Marine Seismic Operations, OGP & IAGC, April 2011, available at
http://www.ogp.org.uk/pubs/448.pdf
19
Seismic Surveys & Marine Mammals, International Association of Oil and gas producers, OGP & IOGC,
available at http://www.ogp.org.uk/pubs/358.pdf
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Written Submission on behalf of Respondents.
during normal mitigation strategies is prevented20. Very little is known about the
sound levels at which the hearing damage or physical injury to whales and dolphin
could take place. The most likely scenario for injury of an animal by acoustic
equipment would be if equipment were turn on with full power while the animals
were close to it. Seismic surveys are required to soft start or ramp start by
gradually increasing gun members and pressure over a period so that animal has time
25. Further according to BOEM, seismic surveys in the Atlantis OCS, should not cause
26. In the word of the federal bureau of ocean energy management there has been no
documented scientific evidence of noise from air guns used in geological and
27. Despite all these negligible risks the industry follows certain standards.
Trained protected species observers (PSOs) are onboard to watch for animals.
28. Furthermore Passive Acoustic Monitoring Systems are there in locations of the
operations which detect the presence of marine mammals (whale or dolphin). During
seismic operation which allows mitigation measures that minimize the potential
20
Ibid
21
Impact of Marine Acoustic Technology on the Antarctic environment, SCAR Ad hoc group on Marine Acoustic
technology and the environment.
22
Seismic Surveying 101, IAGC, IPAA & NOIA, available at http://www.api.org/~/media/files/oil-and-natural-
gas/exploration /offshore/seismic-survey-factsheet.pdf
23
ibid
24
Available at http://www.seismicsurvey.co.nz
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Written Submission on behalf of Respondents.
29. Based on the above findings it is contended that the technology is required and is
essential with a high priority level and therefore should not be banned.
III. HPGL has not done any act which is in violation of Consitution of Swatantra.
30. HPGL is not in violation of the constitution because the slaughter of animals is not
banned in Union of Swatantra. [A] And the act takes place in another territory. [B]
of Swatantra is pari materia with that of India. Thereby it can be concluded that the
Union ofSwatantra although practices polytheism for religious purposes but nowhere
does the constitution specifically states for prohibition of the slaughter of animals for
the purposes of meat. Article 48A of the constitution Protection and Improvement of
environment and safeguarding of forests and wildlife but this article is contained in
the Directive Principles of State Policy which are not enforceable in law. Similarly
Article 51A (g) talks about to protect and improve the natural environment including
forest, lakes, rivers and wildlife and to have compassion for living creatures. This also
by Chief Justice H.L. Dattu which was filled to put ban on killing of animal for
religious purposes. It held that At the end of day a balance..a harmony has to be
maintained between faith, religion and such orders These are very sensitive matters.
We cannot close our eyes to centuries old traditions followed and start examining
them. Similarlly in the instant case the tradition of killing dolphins is been followed
since last many years and now it cannot be banned or treated as unconstitutional as
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Written Submission on behalf of Respondents.
this is also very sensitive matter. People of paratantra also have right to religion as per
Article 25 of Pratantra constitution which provide them equal right to claim religious
rights over other who domain them. If people of Swatantra can claim religious right to
not kill dolphins as they are their deity then, people of Paratantra can also claim their
33. Also, as per the fact it was reported by some news channels that HPGL delibrately
forced the mammals to enter the paratantra side from swatantra side which would lead
to commercial benefits to its subsidiuaries. This is to bring in notice that those report
was given by news reporters which under matter of law and substance cannot be
relied on. Those mammals might have gone their by themselves and not by force and
if its not by force then as a matter of fact people of pratantra has right to practice their
religion as given under Article 25 of Pratantra Constitution. Also, now those marine
species are under the territory of Pratantra and not Swatantra. So, People of Pratantra
can practice their religion, custom and tradition. Subsidiaries of HPGL also are in
territory of Pratantra and they killed dolphins so as to appease the people of Pratantra
who celebrates Palikattu joyfully as it is one of their sacred festival of the country and
killing of dolphins during Palikattu are their traditions which is been followed by
them since last many years just like on Bar-e-id muslims have tradition to kill goat.
34. Now, as the fact says that subsidiaries of HPGL are in Paratantra, dolphins are killed
in Pratantra to celebrate Palikattu it can be said that this matter is outside the
Endowments, Madras Vs. Sri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt25 it
was held that Under article 26(b), therefore a religious denomination or organization
enjoys complete autonomy in the matter of deciding as to what rites and ceremonies
25
The Commissioner, Hindu Religious Endowments, Madras Vs. Sri Lakshmindra Thirtha Swamiar of Sri
Shirur Mutt, 1954 SCR 1005
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Written Submission on behalf of Respondents.
are essential according to the tenets of the religion they hold and no outside authority
has any jurisdiction to interfere with their decision in such matters. Hence this matter
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Written Submission on behalf of Respondents.
Prayer
In light of the issues raised, arguments advanced and authorities cited, the Government of the
Union of Swatantra requests the Court to adjudge and declare that:
. HPGL and its subsidiaries are different entities in law, and there cannot be any extra
HPGL is not responsible under the extant Swatantra law for the acts or omissions of
its subsidiaries;
While dolphins are undoubtedly sacred under the Swatantra law, any adventure into
the pipe-mallet method may result in acrimony between the two nations, as the Daiji
method is very sacred for the Paratantras and comity of nations must be maintained at
And pass any other order that this Honourable Court may deem fit in the interests of justice,
equity and good conscience.
R 22
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