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Companies Act Section 16(1)(a) Cannot Be Invoked After Unreasonable Delay: Madras HC

Case Law Details

TaxGuru Citation
2026 taxguru.in 10389
Case Name
T.T.Ltd. Vs Union of India (Madras High Court)
Date of Judgement/Order
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T.T.Ltd. Vs Union of India (Madras High Court)

The Madras High Court disposed of four writ petitions challenging separate orders dated 22.02.2018 passed by the Regional Director, Ministry of Corporate Affairs, rejecting the petitioner’s applications under Section 16(1)(a) of the Companies Act, 2013 seeking rectification of the names of the respective third respondent companies on the ground that their names were identical with or too nearly resembled the petitioner’s name.

The petitioner contended that the impugned orders were passed without proper application of Section 16(1)(a) of the Companies Act, 2013. According to the petitioner, unlike Section 22(1)(ii)(b) of the Companies Act, 1956, Section 16(1)(a) does not prescribe any limitation period. It was submitted that the Companies Act, 2013 came into force on 01.04.2014, replacing the Companies Act, 1956, and that the applications under Section 16(1)(a) were filed in May 2017, prior to the Ministry of Corporate Affairs General Circular No. 04/17 dated 16.05.2017. The petitioner further argued that the Circular applied only to applicants whose earlier applications under Section 22(1)(ii)(b) of the Companies Act, 1956 had been rejected on limitation, whereas the petitioner had never invoked that provision. It was also asserted that the petitioner had been incorporated in 1978 and that its founder had been a registered trademark user since 1964, whereas the respective third respondent companies were incorporated subsequently.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,251

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