IN THE HIGH COURT OF JUDICATURE AT MADRAS
K. RAVICHANDRABAABU, J.
Indian Academy of Otorhinolaryngology, Head & Neck Surgery
Versus
Association of Otolaryngologists of India & Others
Original Application Nos. 1 & 2 of 2015 in C.S.No. 6 of 2015
Decided On : 01-06-2015
Academy Name Dispute - Companies Act, 2013 - Section 8 - [Section 8 of the Companies Act, 2013] - The court considered the dispute over the name of the academy,
Fact of the Case:
The plaintiff, an incorporated company under Section 8 of the Companies Act, 2013, filed a suit for declaration and injunction against the defendants to prevent them from setting up an academy with a name similar to the plaintiff's. The plaintiff alleged that the defendants were unlawfully taking steps to commence an academy with a name identical to the plaintiff's, causing confusion among the medical community and the public.
Finding of the Court:
The court found that the plaintiff had a strong prima facie case for continuing the interim orders, and the balance of convenience was in their favor. It concluded that irreparable injury would be caused to the plaintiff if the defendants were permitted to use the same name during the pendency of the suit.
Issues: The main issue was the dispute over the name of the academy,
Ratio Decidendi: The court's decision was based on the statutory backing of the plaintiff's registration under the Companies Act, 2013, and the lack of registration of the third respondent-Academy. It considered the potential confusion and irreparable injury to the plaintiff if the defendants were permitted to use the same name during the pendency of the suit.
Final Decision: The court made the interim orders absolute, allowing the plaintiff's applications and preventing the defendants from setting up an academy with a name similar to the plaintiff's. No costs were awarded.
1. The plaintiff is the applicant in both the Original Applications. The plaintiff filed the suit for declaration that the defendants and their officers, agents, servants, representatives, successors, assignees or anyone claiming through them are not entitled to set up or carry on any academy, association, organization, society, trust, entity or company in the name of the plaintiff Company, viz., "Indian Academy of Otorhinolaryngology Head and Neck Surgery" or any similar name and for a consequential order restraining the defendants and their officers, agents, servants, representatives, successors, assignees or anyone claiming through them from setting up or carrying on any academy, association, organization, society, trust, entity or company in the name of "Indian Academy of Otorhinolaryngology Head and Neck Surgery" or any similar name.
2. Pending disposal of the abovesaid suit, the plaintiff filed O.A.No.1 of 2015 praying for an order of interim injunction restraining the respondents from proceeding with setting up or carrying on of the third respondent Academy under its present name or in any other name similar to that of the Applicant Company. Likewise, the plaintiff also filed Original Application No.2 of 2015 praying for an order of interim injunction restraining the respondents from proceeding with the General Body Meeting of the third respondent Academy scheduled to be held on 10th January 2015, pursuant to the Notice dated 26.11.2014 issued by the third respondent.
3. This Court, by ex-parte order dated 06.01.2015, granted interim injunction in both the applications till 19.01.2015. Thereafter, the respondents appeared and the interim order was further extended from time to time and is in force as on date.
4. The case of the applicant-plaintiff is as follows:
It is a Company limited by guarantee and incorporated under Section 8 of the Companies Act, 2013, with various charitable objectives, out of which, promotion of research in medicine, health care and related fields in Otorhinolaryngology Head and Neck Surgery for the benefit of society, is one such principal objective. The applicant-Company was promoted by its President and Director Prof. Mohan Kameswaran, who along with other Doctors, who are highly reputed in the field of ENT Surgery, envisaged the formation of an academic body to serve as a platform for academicians, irrespective of their age or affiliations in the field of ENT medicine. It is thus with the abovesaid noble object, the applicant-Company was incorporated. The Certificate of Incorporation of the applicant-Company was issued by the Registrar of Companies, Chennai, on 24.09.2014. Soon after its incorporation, the applicant-Company proceeded to commence its activities by conducting the inaugural convention from 12th to 14th December 2014 in Chennai, which was attended approximately by 500 Doctors from across India. The applicant-Company also launched its Web-site - http://iaohns.in/ and also enrolled about 385 members. Thus, the applicant-Company has already established strong reputation and goodwill amongst the medical community and the public at large in the field of Otorhinolaryngology. While that being so, the President of the applicant-Company received a notice, dated 26.11.2014 from the third respondent as a representative of the first respondent, indicating that the first respondent was actively taking steps to commence an Academy under the name and style of "Indian Academy of Otorhinolaryngology - Head and Neck Surgery", i.e. the third respondent, with the identical name of the applicant-Company. Strangely, the letter-head of the said notice shows the President of the applicant-Company also as its member, while the President of the applicant-Company has never consented for being appointed as a member of the third respondent-Academy. The said notice claimed that the third respondent is an Academic wing of the first respondent-Association without indicating as to when the so-called Acad
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