(ii) If, by inadvertence, or otherwise a company on its first registration or on its registration by a new name, has been registered by a name identical with or too resembling with the name of another company previously registered it may, by ordinary resolution and with the previous approval of the Central Government, in writing, change its name. In such a case the Central Government can also direct a company, within 12 months of its registration or registration by its new name, as the case may be, to change its name or new name. The company must carry out the direction and change its name within 3 months from the date of direction or such further period which the Central Government may allow. If a company makes default in complying with such direction, the company and every officer who is in default shall be punishable with fine which may extend to T 1,000 for every day during which the default continues. (Sec. 22) The new name must be notified to the Registrar, who will enter the new name in the register in place of the former name, and shall issue a fresh certificate of incorporation with the necessary alterations embodied therein.
The change of name shall be complete and effective only on the issue of such a certificate. It is to be noted that change of name will neither affect any rights or obligation of the company nor render any legal proceedings by or against the company defective in any way. (Sec. 23)