The NWT Supreme Court has dismissed a Yellowknife electrician’s challenge to the territorial government’s decision to register Naka Power’s business names.
In a ruling circulated on Friday, Chief Justice Shannon Smallwood found the registrar of corporations acted reasonably when approving the names Naka Power (NWT), Naka Power (Yellowknife) and Naka Power Utilities for Northland Utilities when it rebranded in April 2024.
Karel Pekelsky, who operates an electrical services company called Naka Electric, had argued the names were too similar and would confuse the public. He registered the name Naka Electric in March 2021, years before Northland began its rebranding process.
Pekelsky sought judicial review of the registrar’s decisions, arguing they were unreasonable and breached the principles of natural justice and procedural fairness.
Under the NWT’s Partnership and Business Names Act, the registrar is required to refuse a business name that is similar to an existing one and likely to confuse or mislead the public. Where names are similar, the registrar can require consent from the existing business before approving the new one.
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Though Naka Power is now widely known by that name, the registrar in fact decided Northland had to have Pekelsky’s consent to register the name “Naka Power” on its own – and denied its registration when he declined.
But the registrar approved Naka Power (NWT), Naka Power (Yellowknife) and Naka Power Utilities without Pekelsky’s consent, concluding those names were sufficiently distinct from Naka Electric. Those are the formal names Naka Power has since used, for example on its bills.
In her ruling, Smallwood found there was “a reasonable basis” for the registrar to conclude those names were distinctive enough to avoid public confusion.
Smallwood also ruled the registrar was not required to provide reasons for its decisions, noting the Partnership and Business Names Act does not impose such a duty.
