Page 221 - DMGT407Corporate and Business Laws

Corporate and Business Laws

Notes company and that the plaintiff society was a trade protection society and I do not think that the
defendant company is liable to have its business stopped unless it changes its name simply
because a thoughtless person might unwarrantedly jump to the conclusion that it is connected
with the plaintiff society.”

Example: In Asiatic Govt. Security Life Insurance Co. Ltd. vs. New Asiatic Insurance Co.
Ltd. (1939) 9 Comp. Cas. 208, the court held the two names were not too identical and therefore
did not restrain the defendant from using their name.

Example: In Ewing vs. Buttercup Margarine Co. Ltd. (1917), 2 Ch 1, the plaintiff who
carried on business under the name of the Buttercup Dairy Co. succeeded in obtaining an injunction
against the defendant on the ground that the public might think that the two businesses were
connected, since the word ‘buttercup’ was an unnecessary and fancy one.

Example: In Executive Board of the Methodist Church in India vs. Union of India (1985)
57 Comp. Cas. 443 (Bom), the Methodist Church in India sought registration of a company in the
name of ‘Methodist Church in India Trust Association’. There was already existing a company
bearing the name Methodist Church in Northern India Trust Association (P) Ltd.’ in Calcutta.
The former secretary of the latter’s association informed the registrar that the said company had
not functioned since 1970; that no annual reports or minutes had been filed with the registrar
since 1970; and that some directors had died and some had left. The question was whether in
these circumstances the Calcutta company was a bar to the registration of the new company.
Held: If a company is practically defunct, it is not a bar to registration of a new company with a
similar name.

9.1.3 Use of Certain Keywords as Part of the Name

The Department of Company Affairs has clarified that if a company used any of the following
key words in its name, it must have a minimum authorised capital mentioned against the
keywords in the Table below:

Key words Required Authorised
Capital (`)
(i) Corporation 5 crore
(ii) International, Globe, Universal Continental, Inter-continental, 1 crore
Asiatic, Asia, being the first word of the name
(iii) If any of the words at (ii) above is used within the name (with 50 lakh
or without brackets)
(iv) Hindustan, India, Bharat, being the first word of the name 50 lakh
(v) If any of the words at (iv) above is used within the name 5 lakh
(with or without brackets)
(vi) Industries/Udyog 1 crore
(vii) Enterprises, Products, Business, Manufacturing 10 lakh

Guidelines for Availability of Names for Companies

The Central Government has issued clarifications under s. 20.

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