Anil wants to incorporate a company in the name 'National Electricity Corporation Limited'. However, the application was rejected with the reason that the name is identical to the name of an existing company i.e., 'Rasht

CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · December 2024
Anil wants to incorporate a company in the name 'National Electricity Corporation Limited'. However, the application was rejected with the reason that the name is identical to the name of an existing company i.e., 'Rashtriya Vidyut Nigam Limited'. Anil objects to this rejection. Referring to the provisions of Rule 8 of the Companies (Incorporation) Rules, 2014, examine the validity of objection of Anil.

Answer & Explanation:

Rule 8 of the Companies (Incorporation) Rules, 2014 deals with Names which resemble too nearly with name of existing company. As per Provisions under Rule 8 of the Companies (Incorporation) Rules, 2014 before granting any name, it will be examined whether name is identical with name of any other company/LLP or any other name already allowed to a company/LLP. Similarity in Meaning: Rule 8 specifies that names are undesirable if they are identical or too closely resemble existing company names. This includes names that are identical in meaning, even if they are in different languages. "National" translates to "Rashtriya" and "Electricity" to "Vidyut" in Hindi. Therefore, "National Electricity Corporation Ltd." and "Rashtriya Vidyut Nigam Ltd." have the same meaning, making them effectively identical under the rules. Conclusion: Given the above points, Anil's objection to the rejection is not valid. The Registrar of Companies is correct in rejecting the proposed name under Rule 8, as the name "National Electricity Corporation Ltd." is considered identical to "Rashtriya Vidyut Nigam Ltd." due to the similarity in meaning, which could lead to confusion.

Topics: Companies Act, 2013

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