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2013 (4) TMI 207 - BOMBAY HIGH COURTRectification of name of company - Sections 20 and 21 & 22 of the Companies Act, 1956 - Company is registered by an identical name or a name that closely resembles the name of a previously registered company - Held that:- Thus, even assuming that the subsequent company is, through inadvertence or otherwise, registered by a name which is identical with or to nearly resembles a name by which a company in existence has been previously registered, it does not follow as a matter of course that it should be directed by the Central Government to change it's name. This is clear from the use of the words “if the Central Government so directs” in section 22(1)(b). The word “if” indicates that it does not follow as a rule that merely because a company is, through inadvertence or otherwise, registered by a name which is identical with or to nearly resembles the name by which a company in existence has been previously registered, it is bound to be ordered to change it's name. The Central Government must satisfy itself that the name by which the subsequent company registered through inadvertence or otherwise is undesirable. Suffice it to state that merely because the name of a company subsequently registered is identical with or too nearly resembles the name of a company which has already been registered, albeit, through inadvertence or otherwise, it does not follow that an order for rectification is bound to be passed. Matter remanded back to ROC for fresh order after considering the relevant facts in an application under section 22.
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