There are two Supreme Court Judgements where this issue has been discussed.
I propose to give here only reference of these judgements and relevant laws so that those who are serious, can search judgements on Google and can read it themselves.
1) Union of India vs Naveen Jindal & Ors AIR 2004 SC 1559
2) V.K. Naswa vs Home Secretary, Union of India 2012(1)SCALE 283
The relevant Laws are:
1) Flag Code of India 2002
2) Prevention of Insult to National Honour Act, 1971
3) Emblems And Names (Prevention of Improper Use) Act, 1950