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Allahabad High Court · body

2000 DIGILAW 486 (ALL)

KOTHARI PRODUCTS LIMITED v. REGISTRAR OF COMPANIES

2000-03-30

S.HARKAULI

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S. HARKAULI, J. ( 1 ) HEARD Sri R. P. Agarwal, learned counsel for the petitioner and Sri A. K. Bachan, learned counsel appearing on behalf of respondents. ( 2 ) TWO supplementary affidavits have been filed today which may be kept on record. This supplementary affidavit contains a copy of the substance of the circular as reported in the government publication. ( 3 ) THE petitioners company is known as "kothari Products Limited". The company markets certain edible items and one of the registered trade marks used by the petitioners company is "parag". The trade mark "parag" is registered under the Trade and Merchandise Act, since the year 1986. ( 4 ) ANOTHER trade mark which is not material here is "pan Parag" and which has been used as registered trade mark by the petitioners company since 1975. ( 5 ) SECTION 20 of the Companies Act, reads as under : "20. (1) No company shall be registered by a name, which, in the opinion of the Central government, is undesirable. (2) Without prejudice to the generality of the foregoing power, a name which is identical with, or too nearly resembles, the name by which a company in existence has been previously registered, may be deemed to be undesirable by the Central Government within the meaning of Sub-section (1 ). " ( 6 ) THE Circular Letter No. 10 (1)-RS/go, dated April 1, 1960, states that the name is considered undesirable within the meaning of Section 20 of the Companies Act and a company will not be allowed to be registered with such a name. . . (k) if it includes the name of a registered trade mark unless the consent of the owner of the trade mark has been produced by the promoters. ( 7 ) THERE is no dispute that the petitioner is the owner of the trade mark "parag". ( 8 ) THERE is also no dispute that the said trade mark "parag" is registered since 1986. It is not the case of respondent No. 2 that any consent of the petitioner (as owner of registered trade mark)was produced for the purposes of registration of the company (respondent No. 3 ). ( 8 ) THERE is also no dispute that the said trade mark "parag" is registered since 1986. It is not the case of respondent No. 2 that any consent of the petitioner (as owner of registered trade mark)was produced for the purposes of registration of the company (respondent No. 3 ). ( 9 ) THE name of respondent No. 3 is "parag International (KNP) Pvt. Ltd. The name includes the registered trade mark "parag" and, therefore, respondent No. 3 could not have been registered under that name without producing the consent of the petitioner who was the owner of registered trade mark "parag". ( 10 ) THE Registrar of Companies has registered respondent No. 3 on May 13, 1998, in violation of the provisions of Section 20 of the Companies Act, as clarified by the aforesaid circular. ( 11 ) IN the circumstances this application under Section 10 of the Companies Act read with Rule 9 is allowed. The Registrar of Companies, respondent No. 1 is directed to take steps for cancellation of registration of respondent No. 3 within one month from the date on which certified copy of this order is produced before respondent No. 1. ( 12 ) IT is clarified that before cancelling the registration, the Registrar of Companies will permit the change of name of respondent No. 3, if respondent No. 3 applies for the same in accordance with law before the Registrar of Companies within 15 days from today provided the new name as suggested is not violative of the provisions of Section 20 or any other law, for the time being in force. .