1. If, through inadvertence or otherwise, a company on its first registration or on its registration by a new name, is registered by a name which,
a. in the opinion of the Central Government, is identical with or too nearly resembles the name by which a company in existence had been previously registered, whether under this Act or any previous company law, it may direct the company to change its name and the company shall change its name or new name, as the case may be, within a period of three months from the issue of such direction, after adopting an ordinary resolution for the purpose;
b. on an application by a registered proprietor of a trade mark that the name is identical with or too nearly resembles to a registered trade mark of such proprietor under the Trade Marks Act, 1999, made to the Central Government within three years of incorporation or registration or change of name of the company, whether under this Act or any previous company law, in the opinion of the Central Government, is identical with or too nearly resembles to an existing trade mark, it may direct the company to change its name and the company shall change its name or new name, as the case may be, within a period of six months from the issue of such direction, after adopting an ordinary resolution for the purpose.
2. Where a company changes its name or obtains a new name under sub-section (1 ), it shall within a period of fifteen days from the date of such change, give notice of the change to the Registrar along with the order of the Central Government, who shall carry out necessary changes in the certificate of incorporation and the memorandum.
3. If a company makes default in complying with any direction given under sub-section (1 ), the company shall be punishable with fine of one thousand rupees for every day during which the default continues and every officer who is in default shall be punishable with fine which shall not be less than five thousand rupees but which may extend to one lakh rupees.
Legal Commentary & Landmark Judgments: Section 16
Section 16 empowers the Central Government and trademark proprietors to compel the rectification of a company's registered name if it identical or too nearly resembles an existing company name or registered trademark.
In trademark passing-off or name conflicts, trademark owners should simultaneously file a civil injunction suit and a statutory application before the Regional Director (RD) under Section 16 within the strict 3-year limitation window to compel administrative name revocation.