Whether the power to rectify a company's name under the Companies Act, 2013, can be exercised after decades of uninterrupted use and whether such power must be exercised within a reasonable timeframe.

ORAL ORDER

1. Mr.P.S.Godiawala, learned advocate for the petitioner, regrets the manner in which the sequence of events is filed and assures this Court that the proper sequence of events shall be filed before the Registry, if he be permitted to file fresh one.

2. Permission, as prayed for, is granted. Registry is directed to accept the same as and when the same is filed.

3. Mr.P.S.Godiawala, learned advocate for the petitioner, submitted that the petitioner is aggrieved by the order dated 04th March, 2024 whereby the Regional Director, North-Western Region, Ministry of Corporate Affairs, Ahmedabad has issued the direction under the provisions of clause (a) of sub Section 1 of Section 16 of the Companies Act, 2013 to rectify the name of the company. It is submitted that clearly, in the opening para of the order, it is referred that a company name with identical name was incorporated in the year 1993 within the jurisdiction of Registrar of Companies, Delhi and the petitioner no.1 – Company which has been registered, was incorporated on 06.06.1996 within the jurisdiction of the Registrar of Companies, Ahmedabad. The authority, was of the opinion that as per the mandate provided under Section 4 (2) (a) of the Companies Act, 2013, the name stated in the Memorandum shall not be identical with or resemble too nearly to the name of an existing company registered under the act or any previous Company Law.

4. It is submitted that the petitioner no.1 – Company, is operating in the name and style of ‘Ishan Marketing Pvt. Ltd.’ since the year 1996 i.e. almost for 28 years and doing its business uninterruptedly and is a profit making company and regularly filing income tax returns and returns with the Registrar of Companies and is statutory compliant. It is submitted that it is by now well settled that if the limitation is not provided for exercising the powers, it does not mean that the powers can be exercised at any point of time. It has to be within the reasonable time. It is submitted that considering its long uninterrupted use and business in the name of style of ‘Ishaan Marketing Private Limited’ with the Government authorities and having established reputation with the Corporate, whereas another company admittedly is not functioned and would not even remotely be affected, if the name of the petitioner no.1 is not changed. Considering the powers exercised by the respondent no.2 and its impact, the petitioner, shall suffer irreparable loss not incapable of being compensated in terms of money. It is submitted that though the provision gives three months’ time, in the portal of the Registrar of Companies, the name of the petitioner is continuing as Ishan Marketing Pvt. Ltd.

5. Considered the submissions. Issue notice to the respondents returnable on 28th August, 2024.

6. Ad-interim relief is granted in terms of para 9 (B).