Federal High Court Rejects CAC’s Bid to Halt ₦100 Million Suit Over Identical Company Registration
The Federal High Court in Abuja has dismissed preliminary objections raised by the Corporate Affairs Commission (CAC) and two other parties, clearing the path for a ₦100 million lawsuit filed by Artco Industries Limited. The furniture manufacturing firm is challenging the registration of a company name it alleges is identical to its own, potentially misleading the public and impacting its business.
Presiding Justice Binta Nyako found the objections, lodged by the CAC, Artco Furniture Manufacturing Company Limited, and its owner, Chief (Dr) Onyekachi Iheme, to be without merit. The court determined that the case presents genuine, triable issues that warrant a full judicial hearing.
Artco Industries initiated the suit (No. FHC/ABJ/CS/164/2024) on February 8, 2024, through its counsel, Emmanuel Ekpenyong. The plaintiff contends that Artco Furniture Manufacturing Company Limited, incorporated on September 24, 2021, bears a name that is deceptively similar to its own, which has been in continuous use since October 30, 2003. This alleged similarity, Artco Industries argues, creates confusion among the public regarding the affiliation between the two entities.
Ekpenyong’s argument hinges on Section 852(1) of the Companies and Allied Matters Act (CAMA) 2020, which explicitly prohibits the registration of company names that are identical or confusingly similar. The plaintiff is seeking an order for the CAC to deregister the second defendant and is claiming ₦100 million in damages for alleged losses in revenue.
The CAC had challenged the court’s jurisdiction, while the second and third defendants argued that the lawsuit constituted an abuse of court process, citing a related matter pending before the FCT High Court.
Justice Nyako, however, rejected these objections. She affirmed that the plaintiff has demonstrated sufficient legal interest to pursue redress concerning its corporate identity and established goodwill. The court concluded that the core issues raised in the dispute can only be definitively resolved through a full trial. Furthermore, Justice Nyako distinguished the current proceedings from the FCT High Court case, noting that the latter pertains to a partnership dispute, whereas the present suit directly questions the legality of the company’s incorporation under CAMA and the statutory powers exercised by the CAC.
The matter has been adjourned to October 28 for the commencement of trial. This ruling underscores the importance of meticulous due diligence in company name registration and highlights the legal recourse available to businesses seeking to protect their brand identity and market position.
