{"id":24900,"date":"2026-05-27T08:07:55","date_gmt":"2026-05-27T08:07:55","guid":{"rendered":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/?p=24900"},"modified":"2026-05-27T08:14:19","modified_gmt":"2026-05-27T08:14:19","slug":"company-board-cannot-decide-trademark-right","status":"publish","type":"post","link":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/","title":{"rendered":"Company Board Cannot decide Trademark Right"},"content":{"rendered":"\n<h1 id=\"h-delhi-high-court-clarifies-scope-of-regional-director-s-power-under-section-16-of-companies-act-in-trademark-name-disputes\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Delhi_High_Court_Clarifies_Scope_Of_Regional_Directors_Power_Under_Section_16_Of_Companies_Act_In_Trademark_Name_Disputes\"><\/span>Delhi High Court Clarifies Scope Of Regional Director\u2019s Power Under Section 16 Of Companies Act In Trademark Name Disputes<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">In a significant ruling concerning the interplay between company name registration and trademark rights, the Delhi High Court has clarified the scope of authority of the Regional Director under Section 16 of the Companies Act, 2013. The judgement underscores that while the Regional Director can direct changes in company names that are identical or deceptively similar to existing trademarks, the authority cannot adjudicate upon complex questions of trademark ownership or infringement, which fall within the domain of specialised intellectual property proceedings.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #0c0c0c;color:#0c0c0c\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #0c0c0c;color:#0c0c0c\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/#Delhi_High_Court_Clarifies_Scope_Of_Regional_Directors_Power_Under_Section_16_Of_Companies_Act_In_Trademark_Name_Disputes\" >Delhi High Court Clarifies Scope Of Regional Director\u2019s Power Under Section 16 Of Companies Act In Trademark Name Disputes<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/#Factual_And_Procedural_Background\" >Factual And Procedural Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/#Core_Dispute_Before_The_Court\" >Core Dispute Before The Court<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/#Court_Analysis_And_Reasoning\" >Court Analysis And Reasoning<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/#Finding_On_Trademark_Ownership\" >Finding On Trademark Ownership<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/#Family_Business_And_Brand_Disputes\" >Family Business And Brand Disputes<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/#Final_Decision_Of_The_Delhi_High_Court\" >Final Decision Of The Delhi High Court<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/#Point_Of_Law_Settled\" >Point Of Law Settled<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/#Case_Details\" >Case Details<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/company-board-cannot-decide-trademark-right\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 id=\"h-factual-and-procedural-background\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factual_And_Procedural_Background\"><\/span>Factual And Procedural Background<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Panchhi Petha Store, a well-known entity dealing in traditional sweets, filed a petition challenging an order dated 27 August 2018 passed by the Regional Director (Northern Region). The petitioner had approached the Regional Director seeking rectification and removal of the name of a company called \u201cPanchhi Petha Private Limited\u201d from the register of companies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The petitioner claimed prior rights and ownership over the trademark \u201cPANCHHI\u201d, which had been registered and used for a long time in relation to its business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Regional Director rejected the application, observing that the petitioner was not the owner of the trademark, as the registrations stood in the name of one Subhash Chander. The order also noted the existence of ongoing disputes between the parties before trademark authorities and courts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Aggrieved by this decision, and particularly the finding on trademark ownership, the petitioner approached the Delhi High Court by way of a writ petition under Article 226 of the Constitution.<\/p>\n\n\n\n<h2 id=\"h-core-dispute-before-the-court\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Core_Dispute_Before_The_Court\"><\/span>Core Dispute Before The Court<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The core dispute revolved around whether the Regional Director, while exercising powers under Section 16 of the Companies Act, 2013, could examine and give a conclusive finding on the ownership of a trademark.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The petitioner argued that the Regional Director overstepped its jurisdiction by delving into trademark ownership issues instead of limiting itself to examining the similarity of names for the purpose of preventing public confusion.<\/li>\n\n\n\n<li>The respondents defended the order, contending that the regional director had correctly exercised jurisdiction under Section 16(1)(b).<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-court-analysis-and-reasoning\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Court_Analysis_And_Reasoning\"><\/span>Court Analysis And Reasoning<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Justice Tara Vitasta Ganju carefully examined the scope of Section 16 of the Companies Act, 2013. The provision empowers the central government, through the regional director, to direct a company to change its name if it is identical to or too nearly resembles the name of an existing company or a registered trademark.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Court referred to the judgement of a coordinate bench in <em>CGMP Pharmaplan (P) Ltd v. Regional Director, Ministry of Corporate Affairs<\/em> (2010 SCC OnLine Del 2387), which in turn relied upon the Division Bench decision in <em>Montari Overseas Ltd v. Montari Industries Ltd<\/em> (1995 SCC OnLine Del 864).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These judgements clarify that the Regional Director\u2019s inquiry is limited to determining whether the company name \u201ctoo nearly resembles\u201d another name or trademark so as to cause confusion in the minds of the public.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The powers of the Regional Director are not as wide as those exercised by a civil court in a passing-off action or by the Intellectual Property Division in trademark disputes.<\/p>\n\n\n\n<h3 id=\"h-finding-on-trademark-ownership\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Finding_On_Trademark_Ownership\"><\/span>Finding On Trademark Ownership<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Justice Ganju observed that the regional director had gone beyond this limited mandate by recording a finding that the petitioner was not the owner of the trademark \u201cPANCHHI\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Such a determination on ownership involves intricate questions relating to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prior use of the trademark<\/li>\n\n\n\n<li>Registration rights<\/li>\n\n\n\n<li>Validity of trademark claims<\/li>\n\n\n\n<li>Competing intellectual property interests<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The court held that these issues require detailed evidence and are best left to specialised forums such as<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Trade Marks Registry<\/li>\n\n\n\n<li>The High Court in intellectual property matters<\/li>\n\n\n\n<li>Civil courts dealing with trademark disputes<\/li>\n<\/ul>\n\n\n\n<h3 id=\"h-family-business-and-brand-disputes\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Family_Business_And_Brand_Disputes\"><\/span>Family Business And Brand Disputes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The court emphasised that both parties belong to the same extended family and are involved in multiple litigations concerning the brand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In such family business disputes involving intellectual property rights, the regional director cannot act as an arbiter of trademark ownership or proprietary rights.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The object of Section 16 of the Companies Act is to prevent public confusion regarding the identity of companies and not to resolve substantive trademark ownership disputes.<\/p>\n\n\n\n<h2 id=\"h-final-decision-of-the-delhi-high-court\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Decision_Of_The_Delhi_High_Court\"><\/span>Final Decision Of The Delhi High Court<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Delhi High Court set aside the impugned order dated 27 August 2018.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, liberty was granted to both parties to approach the regional director afresh, if necessary, in accordance with law. All rights and contentions of the parties were left open.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accordingly, the writ petition was disposed of.<\/p>\n\n\n\n<h2 id=\"h-point-of-law-settled\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Point_Of_Law_Settled\"><\/span>Point Of Law Settled<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The judgement settles that the jurisdiction of the Regional Director under Section 16 of the Companies Act, 2013, is confined to examining similarity or identity of company names for preventing confusion in the market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The authority cannot adjudicate on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trademark ownership disputes<\/li>\n\n\n\n<li>Trademark validity issues<\/li>\n\n\n\n<li>Trademark infringement claims<\/li>\n\n\n\n<li>Passing-off disputes<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These issues fall outside the scope of Section 16 proceedings and must be decided by specialised intellectual property forums.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The ruling maintains a clear demarcation between the following:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Proceeding Type<\/th><th>Purpose<\/th><th>Competent Authority<\/th><\/tr><\/thead><tbody><tr><td>Company Name Rectification<\/td><td>Prevent public confusion due to similar company names<\/td><td>Regional Director under Companies Act<\/td><\/tr><tr><td>Trademark Ownership And Infringement<\/td><td>Determine proprietary trademark rights and violations<\/td><td>IP Courts \/ Trade Marks Registry \/ Civil Courts<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-case-details\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Case_Details\"><\/span>Case Details<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Particulars<\/th><th>Details<\/th><\/tr><\/thead><tbody><tr><td>Case Title<\/td><td><strong>Panchhi Petha Store v. Union of India &amp; Ors.<\/strong><\/td><\/tr><tr><td>Date Of Order<\/td><td>11 November 2024<\/td><\/tr><tr><td>Case Number<\/td><td>W.P.(C) 773\/2019<\/td><\/tr><tr><td>Name Of Court<\/td><td>High Court of Delhi<\/td><\/tr><tr><td>Name Of Honourable Judge<\/td><td>Justice Tara Vitasta Ganju<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-conclusion\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Delhi High Court\u2019s ruling reinforces the limited jurisdiction of the Regional Director under Section 16 of the Companies Act, 2013. The judgement draws a clear distinction between company name rectification proceedings and substantive trademark litigation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By holding that questions relating to trademark ownership and infringement must be decided by specialised intellectual property forums, the Court has strengthened procedural clarity and ensured that complex IP disputes are adjudicated by competent authorities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Clarifies Scope Of Regional Director\u2019s Power Under Section 16 Of Companies Act In Trademark Name Disputes In a significant ruling concerning the interplay between company name registration and trademark rights, the Delhi High Court has clarified the scope of authority of the Regional Director under Section 16 of the Companies Act, 2013.<\/p>\n","protected":false},"author":56,"featured_media":24898,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"two_page_speed":[],"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":""},"categories":[21],"tags":[5149,28],"class_list":["post-24900","post","type-post","status-publish","format-standard","has-post-thumbnail","category-intellectual-property","tag-intellectual-property","tag-top-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6.1 (Yoast SEO v27.6) - 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