Same name of 2 firms
Querist :
Anonymous
(Querist) 05 July 2011
This query is : Resolved
Mr. x runs business in the name of 'ABCD'(Prop. Firm) at Delhi. Mr. y starts same business in the name of 'AB_Cd'(Prop. Firm) at Lucknow. Mr. X issue notice to Mr. y to stop business on the ground that he is using his firm name. is Mr. x legally right ?
Guest
(Expert) 06 July 2011
Depends upon who has registered the name of his firm, whether Mr. x or Mr. y. So, if Mr. x has not already registered his firm with business specification, he cannot be said to be legally right to serve notice to y to stop his business.
H.M.Patnaik
(Expert) 15 July 2011
In the instant case , the proprietorship firms indicated are located in different state/ U.T.. In absence of a non- compete agreement between the individual business-owners, Mr. X does not have any issue to restrict the other party , since there is no mandatory provision for regn. of proprietary firms in India. These firms get themselves registered under different state Acts like the Shops & Commercial Establishment Act, State VAT Act etc. depending upon business necessities.
However, if Mr.X has a registered tradename, brandname synonymous to the firm name and products & services are dealt in the aforesaid brandname etc. ,he is free to issue a notice to infringing parties and take up suitable legal recourse available under the specific law.
Advocate. Arunagiri
(Expert) 15 July 2011
Only if the firm is registered they can claim their legal entity. otherwise they can not.
