The Mumbai bench of the National Company Law Tribunal (NCLT) has dismissed an application filed by Anil Dhirubhai Ambani Ventures Pvt Ltd (ADAVL) seeking to stop the Hinduja Group from using the ‘Reliance’ brand as part of its takeover of the insolvent Reliance Capital (RCap).
A detailed order is awaited.
The dispute stems from a 2014 brand licensing agreement that granted Reliance Capital a non-exclusive, royalty-free license to use the ‘Reliance’ name for 10 years. Although ADAVL terminated the agreement in June 2021, NCLT’s 27 February order allowed IndusInd International Holdings Ltd (IIHL)—the Hinduja Group’s bidding entity—to use the brand for three years as part of the approved resolution plan.
ADAVL is now seeking a recall of that portion of the order, arguing that the approval did not entitle IIHL to continue using the brand.
ADAVL maintains that the ‘Reliance’ brand is not an asset under the Insolvency and Bankruptcy Code (IBC) and that it was not consulted on the decision to extend IIHL’s brand usage during the resolution process. However, in August, IIHL clarified that it intends to rebrand Reliance Capital under the ‘IndusInd’ name after completing the takeover, addressing some of ADAVL’s concerns.
Rohan Kadam, counsel for the administrator, stated that both parties had agreed on the licensing terms to facilitate the resolution process, with the agreement permitting renewal by mutual consent. He emphasized that no legal harm was caused to ADAVL.
Despite NCLT’s approval of the ₹9,681 crore resolution plan in February, the takeover has yet to be implemented. IIHL and RCap’s lenders remain at odds over execution.
At the most recent hearing, IIHL informed the tribunal that it had deposited ₹2,750 crore in an escrow account for creditors, and NCLT has instructed regulators, including the Reserve Bank of India, to expedite the necessary approvals.
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. However, the delay in implementation leaves unresolved tensions between the parties.
