A private limited company changes its name from ABC DEF Private Limited to ABC LMNOP QRSTS India Private Limited. Even more than 2 years after name change the company continues to do business (like operate its bank account, raise invoices, receive money, etc) in its old name.
Is this legal?
During teh last few months, a private limited company XYZ private limited has advanced money to this company in its old name (i.e ABC DEF Private Limited). What legal action can be taken by XYZ on ABC DEF (alias ABC LMNOP QRSTS) and/or its Directors.
Registration of change of name of a company shall not affect any rights or obligations of the company, or render defective any legal proceedings by or against it; and any legal proceedings which might have been continued or commenced by or against the company by its former name may be continued by or against the company by its new name. See Sec. 23 of companies Act 1956.