(1) If, through inadvertence or otherwise, a company on its first registration or on its registration by a new name, is registered by a name which, in the opinion of the Central Government, is identical with, or too nearly resembles, the name by which a company in existence has been previously registered, whether under this Act or any previous company law, it may direct the company to change its name within a period of three months from the issue of such direction, after adopting an ordinary resolution for the purpose.

(2) If the company has not changed its name within the period specified under sub-section (1), the Central Government may allot a new name to the company in such manner as may be prescribed.

(3) When the name is changed or a new name is allotted under this section, the Registrar shall enter the new name on the register of companies in place of the former name and issue a fresh certificate of incorporation with the new name, which the change of name shall be complete and effective.