(5)(i)Upon receipt of an application under sub-section (4), the Registrar may, on the basis of information and documents furnished along with the application, reserve the name for a period of sixty days from the date of the application.(ii)Where after reservation of name under clause (i), it is found that name was applied by furnishing wrong or incorrect information, then,—(a)if the company has not been incorporated, the reserved name shall be cancelled and the person making application under sub-section (4) shall be liable to a penalty which may extend to one lakh rupees;(b)if the company has been incorporated, the Registrar may, after giving the company an opportunity of being heard—(i)either direct the company to change its name within a period of three months, after passing an ordinary resolution;(ii)take action for striking off the name of the company from the register of companies; or(iii)make a petition for winding up of the company.
