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Informist, Tuesday, Aug 20, 2024

 

NEW DELHI – The administrator of Reliance Capital Ltd today defended in the National Company Law Tribunal the use of the "Reliance" brand name by IndusInd International Holdings Ltd, whose resolution plan for the debt-ridden company was accepted. The administrator said that the tribunal's February order had allowed IndusInd International to use the "Reliance" brand for three years, in line with the existing agreements.

 

The tribunal was hearing an application by Anil Dhirubhai Ambani Ventures Pvt Ltd seeking to restrain IndusInd International from using the "Reliance" brand once the resolution plan for Reliance Capital was implemented. Anil Dhirubhai Ambani Ventures said that it had terminated its brand licensing agreement with Reliance Capital in June 2021, citing financial defaults. However, the debt-ridden company continued to use the brand, it said.

 

Following the expiry of the agreement, Reliance Capital's right to use the brand ceased, said Anil Dhirubhai Ambani Ventures. There is no provision in law, whether under the Insolvency and Bankruptcy Code, 2016, or otherwise by which the tribunal can revive an agreement, which has expired by efflux of time, or amend the terms in the course of approving a resolution plan, said Anil Dhirubhai Ambani Ventures. The resolution plan approval order was passed without hearing them, and it therefore violated basic principles of natural justice, according to Anil Dhirubhai Ambani Ventures.

 

In reply, the administrator of Reliance Capital said that there was no prejudice or legal injury since the resolution professional and Anil Dhirubhai Ambani Ventures had mutually agreed that the branding agreement would be available for the purposes of the insolvency resolution process and plan implementation. The licence agreement itself says it can be renewed subject to mutual agreement (for insolvency process and plan implementation), said the administrator.

 

Hence, no prejudice has been caused to the company, the administrator stated. The tribunal will hear the case on Aug 27. In February, the Mumbai bench of the tribunal had approved IndusInd International Holdings's resolution plan for Reliance Capital.  End

 

Reported by Surya Tripathi

Edited by Aditya Sakorkar

 

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