 "Anil Dhirubhai Ambani Ventures (ADAVPL), a company owned by Anil Ambani, has approached the National Company Law Tribunal (NCLT) in Mumbai, requesting the court to direct Hinduja-owned IndusInd International Holdings (IIHL) to cease using the ‘Relian")
ILLUSTRATION: AJAY MOHANTY
Anil Dhirubhai Ambani Ventures (ADAVPL), a company owned by Anil Ambani, has approached the National Company Law Tribunal (NCLT) in Mumbai, requesting the court to direct Hinduja-owned IndusInd International Holdings (IIHL) to cease using the ‘Reliance’ brand name as soon as the resolution plan for bankrupt Reliance Capital (RCap), a financial services firm, is implemented.
The NCLT will hear the matter on Tuesday.
When approving IIHL’s resolution plan in February this year, the NCLT permitted the Hinduja company to use the ‘Reliance’ brand for three years from the date of approval for the purpose of implementing the resolution plan.
IIHL recently paid the entire Rs 9,641 crore to the lenders to acquire RCap, which had been sent for debt resolution in December 2021 after defaulting on loans worth Rs 25,000 crore. IIHL won the auction to acquire RCap, and lenders approved IIHL’s bid in June 2023.
According to the Ambani family agreement, the ‘Reliance’ brand is owned equally by billionaire Mukesh Ambani, chairman of Reliance Industries, and his younger sibling, Anil Ambani. Interestingly, Mukesh Ambani-owned Jio Financial Services is expanding its financial services business in India. The petition argues that the ‘Reliance’ brand should not be used by any other company or individual apart from the Ambani brothers.
In its application, ADAVPL contends that the brand agreement does not grant any ownership interest in the brand to RCap but only permits its use. Given this, the brand is not considered an ‘asset’ of RCap under Section 18 of the Insolvency and Bankruptcy Code, and ADAVPL has requested an immediate cessation of brand use by IIHL following the implementation of the resolution plan.
ADAVPL also argues that it was not heard before IIHL was granted the right to use the brand for three years, as it was not a party to the resolution plan.
The application notes that RCap, currently undergoing the insolvency resolution process, entered into a brand licensing agreement with ADAVPL in April 2014. Under this agreement, ADAVPL granted RCap a non-exclusive, royalty-free licence to use the brand for 10 years, which has now expired.
First Published: Aug 19 2024 | 7:14 PM IST
