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2023 Supreme(Online)(Ker) 72689

HIGH COURT OF KERALA
V.G.ARUN, J
GIREESH GANGADHARAN – Appellant
Versus
UNION OF INDIA – Respondent
WP(C) NO. 21670 OF 2022



Advocates:
For the Appellants/Petitioners: DEEPU THANKAN, UMMUL FIDA, LAKSHMI SREEDHAR, R.RAJANANDINI MENON, SHAHNAS K.P
For the Respondents: KARTHIK S.A.

The rejection of a company name application must consider whether the name conflicts with registered trademarks in the same class of goods and services.

Headnote:This judgment deals with the writ petition filed by the petitioner against the rejection of an application for company name reservation under the Companies Act, 2013. The court analyzed that as per Section 4(2), a name is undesirable if it conflicts with registered trademarks. The court determined that the petitioner should be allowed to submit additional documents for reconsideration of the application.

Result: The third respondent is directed to reconsider the application and pass fresh orders within three months.

Table of Content
1. introduction of petitioner and business intent (Para 1)
2. arguments for name approval and trademark conflict (Para 2 , 3)
3. court observation on name reservation procedures (Para 4)

JUDGMENT

Dated this the 03rd day of January, 2023 The petitioner is a businessman and the Director of two private limited companies; GG Management Solutions Private Limited and Bharath Integrated Solutions Private Limited. GG Management Solutions Private Limited was incorporated on 29.04.2010 with the name ‘GG Resources Management Private Limited’, which was later changed as GG Management Solutions Private Limited. The name ‘GG Management Solution Private Limited’ was chosen, since ‘GG’ is the abbreviation of petitioner’s name; Gireesh Gangadharan. The petitioner intends to start a new company for conducting business in software designing, development, customization, implementation, maintenance, testing, benchmarking, automation, developing, and dealing in computer software and solutions and to import, export, sell, purchase, distribute, host and undertake IT-enabled services, customer support, database management, data science, data processing and providing information and statistics to enhance customer experience of products. Being desirous of including the abbreviation GG for the new company also, petitioner proposed the name ‘GG Net Solutions Private Limited’. The relevant provisions of the Companies Act, 2013 require every person intending to incorporate a company has to commence the registration process by reserving the name of the company. The procedure for reservation is prescribed in the Companies (Incorporation) Rules, 2014 . As per the Rules, the application for reservation has to be submitted through the web service available at www.mca.gov.in through the service, SPICE+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32). SPICE +

is divided into two parts; SPICE+ Part A for name reservation and SPICE+ Part B for entry of documents required for incorporation. Accordingly, the petitioner submitted Ext.P3 application along with requisite documents. To the petitioner’s dismay, the application was rejected stating that the proposed name contained the word ‘GG’, which is a registered trademark and therefore, undesirable as per Rule 8A(1)(b) of the Companies (Incorporation) 5th Amendment Rules, 2019. The rejection of petitioner’s application was communicated under Ext.P4. Aggrieved, this writ petition is filed seeking the following reliefs;

“i. issue a writ of certiorari calling for the records leading to Exhibit P-4 and quash the same;

ii. issue a writ of mandamus or any other appropriate writ, order, or direction directing the respondents to consider and approve SPICE+ Part A application to be submitted by the petitioner for reserving the name 'GG Net Solutions Private Limited'

iii, issue a writ of mandamus or any other appropriate writ, order declaring that 'GG Net solutions Private Limited' cannot be compared to registered device mark 'GG' as shown in Table – I.”

2. Adv.Lakshmi Sreedhar, learned Counsel for the petitioner, contended that the rejection is per se illegal. The following submissions were made in In elaboration of the contention;

As per Section 4 (2) of the Companies Act, the name stated in the Memorandum of Association of the Company shall not be such that its use by the Company is undesirable in the opinion of the Central Government. Going by Rule 8A of the Companies (Incorporation) Rules, 2014 , the name shall be considered undesirable if (a) it is prohibited under the provisions of section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 (12 of 1950), (b) the name includes a trade mark registered under the Trade Marks Act, 1999 in the same class of goods or services in which the activity of the company is being carried out or is proposed to be carried out (c) the name includes any word or words which are offensive to any section of the people and (d) the proposed nam

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