UINA Infra Projects Private Limited was incorporated on 1 st June, 2022. Mr. X had already registered the trade name of "UINA Infra projects" on 1…

CA Intermediate · Corporate and Other Laws · PYQS · January 2025
UINA Infra Projects Private Limited was incorporated on 1 st June, 2022. Mr. X had already registered the trade name of "UINA Infra projects" on 1 st April, 2018 under the Trade Marks Act, 1999. Mr. X was suffering from a pro-longed disease since 1 st April, 2021. When Mr. X recovered from illness on 20 th May, 2024 and joined his own office on 5 th July, 2024, he came to know from his staff members that a company has been incorporated with the name UINA Infra Projects Private Limited. He lodged a complaint with the Regional Director on 10 th July, 2024 requesting him to order the company to change its name. The Regional Director examined the application of Mr. X and on 11 th July, 2024, issued a direction to UINA Infra Projects Private Limited to change its name. Mr. D, a director of UINA Infra Projects Private Limited contended that the above direction of the Regional Director was bad in law and therefore not proper on the following grounds: A. That the name of the company is not too identical with or too nearly resembles to the name of any other company; and B. That the stipulated time period of two years of making any complaint with respect to the name in the above ground was already over on 31 st May, 2024. Referring to the applicable provisions of the Companies Act, 2013, decide, whether the contention of Mr. D is tenable. Also advise UINA Infra Projects Private Limited the time period within which the company will be required to change its name in case the direction of the Regional Director was valid.

Suggested Answer and Working Notes:

According to section 16 of the Companies Act, 2013, if, through inadvertence or otherwise, a company on its first registration or on its registration by a new name, is registered by a name which: in the opinion of the Central Government (Power delegated to the Regional Director), is of opinion that name (original or revised/new) of company is identical with or too nearly resembles to the name by which a company in existence, then, either: (i) On its own or (ii) On an application by a proprietor of already registered trade mark under the Trade Marks Act, 1999, it may direct the company to change its name. The company shall change its name or new name, as the case may be, within a period of three months from the issue of such direction, after adopting an ordinary resolution for the purpose. Application by a proprietor of registered trade mark shall be made within three years of incorporation or registration or change of name of the company. In the given question, UINA Infra Projects Private Limited was incorporated on 1 st June, 2022. The trade mark of UINA Infra Projects was registered on 1 st April, 2018. In terms of the above stated provisions and facts of the question, we can answer the questions as under: Part (i) - First Ground of Objection: In the first instance, the contention of Mr. D (a director of UINA Infra Projects Private Limited) is not tenable due to the fact that the restriction is not only with respect to the name of an existing company, but also as a result of an application filed before the appropriate authority by the proprietor of a registered trademark. In other words, the name of the company "UINA Infra Projects” is verbatim identical to the trademark registered by Mr. X. Hence, the contention of Mr. D is not tenable. Part (ii) - Second Ground of Objection: In the second instance also, the contention of Mr. D is not tenable. The application should be made by the proprietor of a registered trademark within three years of incorporation or registration or change of name of the company and not within two years.

Topics: Incorporation of Company and Matters Incidental Thereto

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