Registered trade mark in company name requires owner consent; registration without consent is liable to cancellation.

A company name that incorporates a registered trade mark cannot be registered without the trade mark owner's consent. The text applies section 20 of the Companies Act, 1956 to treat such a name as undesirable where consent is absent, and notes that the Registrar acted contrary to the statutory requirement in registering the company under the impugned name. The registration was therefore liable to cancellation, while a lawful change of name could still be sought within the permitted time.

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Issues: Whether a company name incorporating a registered trade mark could be registered without the consent of the trade mark owner, and whether such registration was liable to be cancelled for contravention of section 20 of the Companies Act, 1956.

Analysis: The registered trade mark "Parag" belonged to the petitioner and had been registered since 1986. The respondent company's name included that mark, but no consent from the petitioner was produced for registration. Section 20 of the Companies Act, 1956 treats a name as undesirable where it includes a registered trade mark without the owner's consent, and the administrative circular relied upon by the Court clarified the same position. On these facts, the registration of the respondent company was contrary to the statutory requirement.

Conclusion: Registration of the respondent company under the impugned name was illegal and the Registrar was directed to cancel the registration, while permitting a lawful change of name if sought within the time allowed.

Final Conclusion: The petitioner succeeded and the impugned company name could not be retained without compliance with the statutory consent requirement.

Ratio Decidendi: A company name that includes a registered trade mark cannot be registered without the consent of the trade mark owner, and registration made in breach of that requirement is liable to be cancelled.

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