9911796707
TMI Blog1984 (9) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... ected delegates from all over the world governed the Methodist Church throughout the world. Outside the United Methodist Church of America, there was a single conference of the Methodist Church in every country or region where the church was functioning. The central conference of the Methodist Church in Southern Asia was governing the said church in India. In 1980, the central conference decided to reorganise the Methodist Church in Southern Asia by having an autonomous body for India. It was, therefore, decided to reorganise the Methodist Church in Sourthern Asia as the Methodist Church in India. On January 7, 1981, the central conference declared that the central conference of the Methodist Church in Southern Asia stood dissolved and was reorganised as the central conference of the Methodist Church in India as from January 7, 1981. Accordingly, the original first petitioner, viz., the executive board of the Methodist Church in Southern Asia, also amended its name to the executive board of the Methodist Church in India. On January 7, 1981, the central conference of the Methodist Church in Southern Asia further resolved that the executive board of the Methodist Church in Southern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closely resembles an already existing company, viz., Methodist Church in Northern India Trust Association P. Ltd., as also a company registered in Hyderabad, viz., Methodist Church of India, Hyderabad. The petitioner was asked to obtain a "no objection" certificate from these two companies. It seems that on February 4, 1980, seven persons applied for registration of a company limited by guarantee to be known as "Methodist Church of India". Their application appears to have been promptly attended to. On February 11, 1980, respondents Nos. 1 to 3 granted the application. On June 30, 1980, the fourth respondent were also granted licence under section 25 of the Companies Act to dispense with the words "Limited" or "Private Limited", in their name. On July 26, 1980, the fourth respondent company was incorporated at Hyderabad. Its memorandum of association is signed by seven persons and it is a company limited by guarantee with each of the seven persons giving a guarantee for Rs. 100 each. In view of this company being registered at Hyderabad in July, 1980, the petitioners were required in August, 1980, by the Registrar of Companies at Madras to obtain a "no objection" certificate from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icial organisation and is set up by seven private individuals. Such a name, if it is allowed to be used by any company simply because there is no previously registered company under the Companies Act bearing such a name, would cause not only confusion in the minds of the members of the Methodist Church, but also it can mislead the general public. Moreover, the Methodist Church in India also owns a number of properties, both movable and immovable in India. If a company is allowed to call itself the Methodist Church of India, an impression may be created that the properties of the Methodist Church in India belong to such a company. There is a grave danger of misuse of such a name for the purpose of claiming ownership of the properties which belong to the Church. In fact, immediately after getting respondent No. 4 registered, that company has filed a suit against the petitioners in Hyderabad asking, inter alia, for a schedule of properties of the said church in India, for accounts and for an injunction restraining the officials of the said church from dealing with the said properties. Respondent No. 4 has also indulged in other litigations. This would also indicate that the registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no other company with such a name registered in India. This contention has to be stated only to be rejected. Any and every member of the Methodist Church cannot be allowed to thus register a company called the Methodist Church of India, particularly when the object of such a company is to take over the properties and institutions of the church. It is the case of the petitioners that there are only seven members of the fourth respondent-company. Learned advocate for respondent No. 4 is unable to give any information on this point. In their affidavit-in-reply, the fourth respondent has stated that they are enrolling more members. No particulars, however, are given about membership. It would thus be seen that the membership of the fourth respondent is, to put it mildly, extremely limited and the fourth respondent, in these circumstances, cannot be allowed to use the name "Methodist Church of India". In Halsbury's Laws of England, fourth edition, Volume 7, para. 130, it is stated as follows: "If in the opinion of the department, the name by which a company is registered gives so misleading an indication of the nature of its activities as to be likely to cause harm to the publi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l or prohibited by any statute, it cannot be regarded as an unlawful purpose. Respondents Nos. 1 to 3 were, therefore, not required to make any elaborate enquiry. But they could have at least required respondent No. 4 to get a "no objection" certificate from one of the existing companies just as they had required the petitioners to obtain such a certificate. No enquiry, however, seems to have been made by respondents Nos. 1 to 3. One cannot, of course, expect respondents Nos. 1 to 3 to have any extensive general knowledge. But one would expect them to have at least heard of the Methodist Church. Anyway it is fairly apparent from the name that it denotes some sort of a religious group. When such a name is proposed to be used by a company which is being registered for the first time, it would not have been out of tune for respondents Nos. 1 to 3 to have enquired as to whether the persons applying for registration were in any manner connected with or authorised by the Methodist Church to get the company registered. In other words, they ought to have enquired whether the proposed company had any connection with the religious group whose name it was choosing to adopt. In failing to make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place where the effect of the order was felt would also be the place where the cause of action can be said to arise. A similar view was taken by the Bombay High Court in an earlier case of Joshi v. State of Bombay, AIR 1959 Bom. 363. In view of the ratio laid down by these decisions, the cause of action can be said to have arisen in part at least in Bombay. The petitioners have also submitted that the effect of the registration of the fourth respondent on the properties of the petitioners, is felt wherever the properties are situated. Some of these properties are situated in Bombay. As a result of the registration of the fourth respondent, misunderstanding relating to the title to these properties is likely to arise in Bombay. On this count also, one can say that the effect of the order passed by respondents Nos. 1 to 3 is felt in Bombay. In my view, therefore, this court has jurisdiction to entertain this petition. In these circumstances, the petition is allowed and the rule is made absolute in terms of prayer (a). Accordingly respondents Nos. 1 to 3 are directed to remove the name of respondent No. 4 from the register. Respondent No. 4 is restrained from using the words "Method ..... X X X X Extracts X X X X X X X X Extracts X X X X
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