Ministry Of Corporate Affairs Clarifies Registration
The Ministry of Corporate Affairs (MCA), in furtherance to Circular nos. 02/2014 and 26/2014 dated February 11, 2014 and June 27, 2014 respectively, has issued a Circular no. 29/ 2014 dated July 11, 2014 to all Regional Directors and Registrar of Companies regarding Registration of company names. The Ministry of Corporate Affairs (MCA) has directed that while allotting the names to Companies/Limited Liability Partnerships, the Registrar of Companies should exercise due care to ensure that the names are not in contravention of provisions of Emblems and Names (Prevention of Improper Use) Act, 1950.
According to the provisions of section 3 of The Emblems and Names (Prevention of Improper Use) Act, 1950 no person shall use, for the purpose of any trade, business, calling or profession, or in the title of any patent, or in any trade mark or design, any name or emblem specified in the Schedule or any colourable imitation thereof without the prior permission of the Central Government.
Section 4 (1) of The Emblems and Names (Prevention of Improper Use) Act, 1950 lays down that the Registrar of Companies shall not:-
(a) Register any company, firm or other body of persons which bears any name, or
(b) Register a trade mark or design which bears any emblem or name, or
(c) Grant a patent in respect of an invention, which bears a title containing any emblem or name,
if the use of such name or emblem is in contravention of Section 3.
Further, clause (2) states that if any question arises before a competent authority whether any emblem is an emblem specified in the Schedule or in colourable imitation thereof, the competent authority may refer the question to the Central Government, and the decision of the Central Government thereon shall be final.
The Ministry of Corporate Affairs (MCA) vide the aforesaid circular has clarified that the Registrar of Companies shall act diligently to ensure that the company names should not be in contravention of the provisions of the Emblems and Names (Prevention of Improper Use) Act, 1950.