NCLT Hears Anil Ambani Ventures' Bid To Halt ‘Reliance’ Brand Use By IIHL
The NCLT today heard the arguments on behalf of the Ventures but adjourned the matter to Aug. 27 for IndusInd International Holdings, or IIHL, to continue with its side of the arguments.
The National Company Law Tribunal bench in Mumbai on Tuesday partially heard the arguments on the application of Anil Dhirubhai Ambani Ventures seeking to compel IndusInd International Holdings, a Hinduja Group entity, to stop using the ‘Reliance’ brand name after a resolution plan is implemented.
The request is tied to the ongoing resolution plan for Reliance Capital (RCap), a financial services firm currently undergoing bankruptcy proceedings.
The NCLT today heard the arguments on behalf of the Ventures but adjourned the matter to Aug. 27 for IndusInd International Holdings, or IIHL, to continue with its side of the arguments.
In this case, a Brand Licensing Agreement dated April 1, 2014 granted Reliance Capital a non-exclusive, royalty-free license to use the 'Reliance' brand for 10 years.
However, following the initiation of insolvency proceedings, the RBI filed a petition on Dec. 2, 2021, after which an interim resolution professional was appointed to manage the resolution process for RCap.
As per the application reviewed by NDTV Profit, on June 15, 2021, Anil Dhirubhai Ambani Ventures notified Reliance Capital of the termination of the brand licensing agreement and demanded the cessation of brand use, providing a six-month "cooling off" period for compliance. Reliance Capital’s administrator contested the termination, citing a moratorium imposed by the tribunal on Dec. 2, 2021, as a barrier to enforcement.
The tribunal approved IIHL's proposed resolution plan on Feb. 27, 2024. Subsequently, Anil Dhirubhai Ambani Ventures reiterated its demand for Reliance Capital to cease using the ‘Reliance’ brand in a letter dated July 27, 2023.
The application filed also submits that the NCLT's resolution order on the resolution plan specifies that the brand name, logos, and trademarks of Reliance Capital can be used by the resolution applicant for three years, subject to the terms of existing agreements and payment of applicable fees.
However, it has also been submitted by Anil Dhirubhai Ambani Ventures that the said NCLT order was passed without jurisdiction.
