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        Companies Law

        2018 (4) TMI 1413 - HC - Companies Law

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        Protected professional title doctrine limits use of 'architect' while allowing architectural services by unregistered entities. Delhi HC analysed the Architects Act, 1972 and held that it protects the title and style of 'architect' rather than creating an exclusive monopoly over ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Protected professional title doctrine limits use of "architect" while allowing architectural services by unregistered entities.

                            Delhi HC analysed the Architects Act, 1972 and held that it protects the title and style of "architect" rather than creating an exclusive monopoly over architectural services. Registered architects were found to have locus standi to challenge measures affecting the profession. The court further held that unregistered persons and juristic entities may render architectural services, but may not hold themselves out as architects or use "architect" and its derivatives in their names. Circulars and notices requiring prior approval or NOC for incorporation of entities merely because architectural services were among their objects were quashed, while the restriction on misuse of the protected title was upheld; cancellation of foreign investment approval was declined.




                            Issues: (i) Whether the registered-architect petitioners had locus standi to maintain the challenge; (ii) Whether the Architects Act, 1972 prohibits unregistered persons and juristic entities from rendering architectural services, or only prohibits use of the title and style of architect; (iii) Whether companies and LLPs can use the word architect or its derivatives in their names and whether the impugned circulars, notice and request for cancellation of FIPB approval were sustainable.

                            Issue (i): Whether the registered-architect petitioners had locus standi to maintain the challenge.

                            Analysis: The petitioners were not strangers to the subject matter, as they were registered architects asserting compliance with the statutory regime governing the profession. The threshold for locus standi is applied liberally where the applicants are directly connected with the dispute and seek enforcement of legal requirements affecting their profession.

                            Conclusion: The objection to locus standi was rejected and the petitioners were held entitled to maintain the writ petitions.

                            Issue (ii): Whether the Architects Act, 1972 prohibits unregistered persons and juristic entities from rendering architectural services, or only prohibits use of the title and style of architect.

                            Analysis: The scheme of the Architects Act was contrasted with the Advocates Act, 1961 and the Chartered Accountants Act, 1949, both of which contain express prohibitions against practice by unlicensed entities. The Architects Act, by contrast, defines an architect, prescribes registration and qualifications, and prohibits misuse of the title and style of architect, but contains no express prohibition against the rendering of architectural services by unregistered persons or juristic entities. The Statement of Objects and Reasons and legislative history were read as showing that the statute was intended to protect the title of architect, not to make design, supervision or construction the exclusive province of registered architects.

                            Conclusion: The Act was held not to bar unregistered persons or juristic entities from rendering architectural services, but only to bar them from holding themselves out as architects.

                            Issue (iii): Whether companies and LLPs can use the word architect or its derivatives in their names and whether the impugned circulars, notice and request for cancellation of FIPB approval were sustainable.

                            Analysis: Use of architect or its derivatives in the name of an unregistered entity was treated as use of the title or style of architect and therefore impermissible. On that basis, the company's initial name was found inconsistent with the Act, though the subsequent name change removed the infraction. The request to cancel the foreign investment approval was declined because no continuing violation warranting such cancellation was shown. The impugned circulars and the impugned notice were held valid only to the extent they prohibited misuse of the title or style of architect, but invalid insofar as they required prior approval or NOC for incorporation of entities merely because architectural services formed one of their objects.

                            Conclusion: The restrictions preventing use of architect in names were upheld, while the parts of the circulars and notice that barred incorporation of companies or LLPs having architectural services as an object without COA approval were quashed; the prayer to cancel the FIPB approval was rejected.

                            Final Conclusion: The writ petitions were disposed of by sustaining the statutory prohibition against misuse of the title or style of architect, while striking down the regulatory embargo on incorporation of entities merely because they proposed to provide architectural services, and by refusing cancellation of the foreign investment approval.

                            Ratio Decidendi: In the absence of an express statutory prohibition, a regulatory statute that only protects a professional title cannot be expanded by interpretation to prohibit unregistered persons or juristic entities from carrying on the underlying activity, though they may be restrained from using the protected title or style.


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