In a setback for Anil Ambani's ADAVL, the Mumbai bench of the National Company Law Tribunal (NCLT) has dismissed its application seeking to stop the Hinduja Group from using the ‘Reliance’ brand as part of its takeover of the insolvent Reliance Capital (RCap), Livemint reported.
While approving Hinduja Group firm IIHL's resolution plan for Reliance Capital in February this year, NCLT had allowed the company to use the Reliance brand for three years from the date of approval of the plan to implement the resolution plan transaction. However, Anil Dhirubhai Ambani Ventures Pvt Ltd (ADAVPL), a Reliance Group company, filed an interim application in the NCLT, seeking direction to IIHL to stop using the 'Reliance' brand name as soon as the resolution plan is implemented.
Reliance Capital is set to be acquired by Hinduja Group's IndusInd International Holdings Ltd (IIHL) in a Rs 9,650 crore resolution plan. However, the takeover has yet to be implemented. Both IIHL and RCap’s lenders remain at odds over execution.
Anil Ambani vs Hinduja Group
The dispute began with an April 2014 brand licensing agreement between Anil Dhirubhai Ambani Ventures Private Limited (ADAVPL) and Reliance Capital (RCAP). Under the agreement, ADAVPL granted RCAP a non-exclusive, royalty-free license to use the brand for 10 years, which has also expired. Earlier, ADAVL terminated the agreement in June 2021.
However, NCLT, in its 27 February order, allowed IIHL to use the brand for three years as part of the approved resolution plan. The approved resolution plan grants IIHL temporary rights to use Reliance Capital’s brand and logo for three years, in accordance with existing agreements, to facilitate the company’s turnaround.
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