Anil Ambani’s company approach NCLT to restrain IIHL from using the ‘Reliance’ brand name

Anil Dhirubhai Ambani Ventures Pvt. Ltd. (ADAVPL), a firm owned by Anil Ambani, has sought intervention from the National Company Law Tribunal (NCLT) in Mumbai as the company is asking the court to prevent IndusInd International Holdings Ltd. (IIHL), owned by the Hinduja Group, from using the ‘Reliance’ brand name once the resolution plan for Reliance Capital (RCap) is implemented.

Background

The dispute stems from the NCLT’s decision in February 2024 to approve IIHL’s resolution plan for the debt-ridden RCap. The tribunal allowed IIHL to use the ‘Reliance’ brand for three years as part of the resolution. IIHL recently paid Rs.9,641 crore to RCap’s lenders, securing the acquisition after RCap defaulted on loans worth Rs.25,000 crore.

Ownership of the ‘Reliance’ Brand

According to a family agreement, the ‘Reliance’ brand is co-owned by Mukesh Ambani, chairman of Reliance Industries, and his brother, Anil Ambani. The brand agreement between ADAVPL and RCap, signed in April 2014, granted RCap a non-exclusive, royalty-free license to use the brand for ten years. This license has since expired now.

Legal Arguments

ADAVPL argues that the brand agreement does not grant RCap ownership of the brand, only the right to use it temporarily. Consequently, the brand should not be considered an asset of RCap under the Insolvency and Bankruptcy Code. ADAVPL further contends that it was not consulted before IIHL was permitted to use the brand for three years, as it was not a party to the resolution plan.

Conclusion: With Mukesh Ambani’s Jio Financial Services expanding in the financial sector, the dispute over the ‘Reliance’ brand’s usage has gained significance. ADAVPL’s plea seeks to safeguard the brand’s association with the Ambani family, challenging IIHL’s right to use it as part of the resolution plan for RCap. The NCLT’s decision on this matter will be closely watched.

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