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Informist, Monday, Oct. 21, 2024

NEW DELHI – The Mumbai bench of the National Company Law Tribunal has dismissed an application by Anil Dhirubhai Ambani Ventures Pvt. Ltd. seeking to restrain IndusInd International Holdings Ltd. from using the "Reliance" brand after the resolution plan for Reliance Capital Ltd. was implemented.

In February, the Mumbai bench of the tribunal approved the resolution plan presented by Hinduja Group's IndusInd International for Reliance Capital. The tribunal also allowed IndusInd International to use the "Reliance" brand for three years, in line with the existing agreements between the parties.

Contesting the tribunal's order, Anil Dhirubhai Ambani Ventures had argued 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, Anil Dhirubhai Ambani Ventures said. 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.

IndusInd International had said that the debt-ridden Reliance Capital will be rebranded under the "IndusInd" name after its takeover and that the group has no interest in carrying on the legacy of Reliance. "The Hindujas have no desire whatsoever to carry on business under the brand Reliance," IndusInd International said. "We are anxious that the transition should be done as quickly as possible because we want to leave this baggage of using the Reliance brand behind."

However, the implementation process will take time, Venkatesh Dhond, advocate appearing for IndusInd International, had said. The concern of Anil Dhirubhai Ambani Ventures that the IndusInd group will run the company under the Reliance brand name is misconceived, he had said.  End

Reported by Surya Tripathi

Edited by Ashish Shirke

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