Rectification of name of company
Section 16 of the Companies Act, 2013 deals with rectification of name of company. 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 regis The Act came into force on 01 Apr 2014.
(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.
Section 16, The Companies Act, 2013 (Act 18 of 2013).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Pure Cure Ayurveda Private Limited, Anr. vs The Union of India, Ors.
Court's Decision & Legal Precedent
Reading section 4(2)(a) together with section 16, the Court held that the purpose of these provisions is to ensure that a company is not registered with a name identical with, or too nearly resembling, an earlier registered corporate name or trade mark, so as to avoid confusion in the market place between similarly sounding businesses; finding that 'Purecure Private Limited' resembled the earlier incorporated 'Pure Cure Ayurveda Private Limited' and was likely to confuse, it directed the Registrar of Companies to remove that name from the register and rectify it.
On this section: States the object of section 16 and actually exercises the rectification power, directing the ROC to rectify the register by removing the later company's offending name.
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Jsw Ip Holdings Private Limited vs The Regional Director
Court's Decision & Legal Precedent
The Court held that, on the language of section 16 of the Companies Act, 2013, an applicant seeking a direction that another company change its name is not required to produce documentary evidence of the injury caused to it or of the quantum of damages suffered by reason of the identical name; the Regional Director's findings rejecting the application on that ground were therefore stayed.
On this section: Construes section 16(1) as confining the enquiry to identity or near resemblance of names, and reads into it no proof-of-injury or damages requirement for the applicant.
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Mind Tree Eduvation Private LTD vs Mindtree LTD, ORS
Court's Decision & Legal Precedent
The Division Bench held that a company's name is not merely its identity but reflects its goodwill and credibility, so that where the later-registered company's name bears a deceptive similarity to the corporate name and registered trade mark of an earlier registered company and can create confusion in the minds of business associates and clients, rectification of the name must follow; the fact that the two companies operate in entirely different fields of business is no answer, and the appellant was directed to drop the word 'Mind Tree'.
On this section: Supplies the 'identical with or too nearly resembles' test on which the rectification power rests, decided under sections 20 and 22 of the Companies Act, 1956, which section 16 of the 2013 Act carries forward.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
2 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 5 instruments name this provision in its title or its text without being made under it.
- Clarification regarding applicability of section 16(1)(a) of the CA 2013 with reference to cases under corresponding provisions of Companies Act, 1956Circular 2017
- Regarding amendments in Schedule III to the Companies Act, 2013-reg.Notification 2018
- Delegations of Powers to Regional Directors under section 458 of CA, 2013Notification 2016
- Notification regarding sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013)Notification 2015
- Delegation_of powers under section 458 of CA 2013 to RDsNotification 2014
Questions about Section 16
What have the courts held on Section 16 of the Companies Act?
Pure Cure Ayurveda Private Limited, Anr. vs The Union of India, Ors. (19 Jan 2023) is the leading judgment on this section among those set out below: States the object of section 16 and actually exercises the rectification power, directing the ROC to rectify the register by removing the later company's offending name. Another 2 judgments on this section are set out below. They run from 2019 to 2023.
How do I find court cases under Section 16 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 16, section 16 Companies Act, section 16 of the Companies Act. People searching for it also type companies act 16 of 2024. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Pure Cure Ayurveda Private Limited, Anr. vs The Union of India, Ors. (19 Jan 2023).
What should I read with Section 16 of the Companies Act, and has it changed?
The rules and notifications made under it are where it actually bites, and there are 2: most recently Companies (Incorporation) 5th Amendment Rules 2021 (2021), then Commencement notification (2018).
When did Section 16 of the Companies Act come into force?
Section 16 of the Companies Act, cited as Companies Act 16, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.