diff --git a/selling/doctype/customer/customer.py b/selling/doctype/customer/customer.py
index 8218b19..6aab938 100644
--- a/selling/doctype/customer/customer.py
+++ b/selling/doctype/customer/customer.py
@@ -172,6 +172,8 @@
 				pass
 
 	def on_update(self):
+		self.validate_name_with_customer_group()
+		
 		self.update_lead_status()
 		# create account head
 		self.create_account_head()
@@ -179,6 +181,12 @@
 		self.update_credit_days_limit()
 		#create address and contact from lead
 		self.create_lead_address_contact()
+		
+	def validate_name_with_customer_group(self):
+		if webnotes.conn.exists("Customer Group", self.doc.name):
+			webnotes.msgprint("An Customer Group exists with same name (%s), \
+				please change the Customer name or rename the Customer Group" % 
+				self.doc.name, raise_exception=1)
 
 	def delete_customer_address(self):
 		for rec in sql("select * from `tabAddress` where customer='%s'" %(self.doc.name), as_dict=1):
diff --git a/setup/doctype/customer_group/customer_group.py b/setup/doctype/customer_group/customer_group.py
index f13690d..a3baaa9 100644
--- a/setup/doctype/customer_group/customer_group.py
+++ b/setup/doctype/customer_group/customer_group.py
@@ -37,6 +37,15 @@
 				To untrash please go to Setup -> Recycle Bin.""" % 
 				(self.doc.customer_group_name), raise_exception = 1)		
 
+	def on_update(self):
+		self.validate_name_with_customer()
+		
+	def validate_name_with_customer(self):
+		if webnotes.conn.exists("Customer", self.doc.name):
+			webnotes.msgprint("An Customer exists with same name (%s), \
+				please change the Customer Group name or rename the Customer" % 
+				self.doc.name, raise_exception=1)
+
 	def on_trash(self):
 		cust = sql("select name from `tabCustomer` where ifnull(customer_group, '') = %s", 
 		 	self.doc.name)