Section 16 of the Companies Act grants the Central Government, through the Regional Director (RD), the...

Section 16 of the Companies Act grants the Central Government, through the Regional Director (RD), the power to rectify a company's name. Subsection (1) allows rectification if the name resembles or is identical to an existing company. The RD can issue directions for a name change suo motu u/s 16(1)(a). However, the RD's jurisdiction differs from a civil court's authority in trademark disputes. The RD cannot determine ownership or similarity of marks as in a passing off action. In this case, the parties claimed ownership over the 'Panchhi' mark and were involved in intellectual property disputes. The Impugned Order by the RD erroneously adjudicated ownership of the mark, exceeding its jurisdiction u/s 16. The RD cannot undertake an examination of marks or decide ownership in a name rectification application where contentions are disputed. The Impugned Order is set aside. .....

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