Reliance Capital Rebranding Sparks Legal Dispute
The ongoing legal battle between the Anil Dhirubhai Ambani Group (ADAG) and Induslnd International Holdings Ltd (IIHL) over the use of the ‘Reliance’ brand name has intensified as both parties appeared before the Mumbai bench of the National Company Law Tribunal (NCLT).
The dispute stems from a brand licensing agreement dating back to April 2014, which granted Reliance Capital the right to use the ‘Reliance’ brand name for a period of ten years.
However, this agreement expired in April 2024, coinciding with the end of the company’s license to use the well-known brand.
The contention arose after Induslnd International Holdings Ltd, part of the Hinduja Group, clarified that it intends to rebrand Reliance Capital under the ‘Induslnd’ name following its successful bid to acquire the insolvent company. The acquisition, valued at Rs 9,861 crore, was approved by the NCLT on February 27, 2024, as part of the resolution plan for Reliance Capital’s debt restructuring.
ADAG, which originally controlled Reliance Capital, has filed a plea seeking to restrain IIHL from using the ‘Reliance’ name during the implementation of the resolution plan, which could potentially extend for up to three years.
The ADAG counsel argued before the bench, led by Justice Virendrasingh G, Bisht and Prabhat Kumar, that the order does not imply that IIHl can use the brand name for free during the resolution plan’s implementation phase. The group is pushing for a recall of this portion of the order, that any continued use of the ‘Reliance’ brand should be properly compensated.
In response, IIHL maintained that it is within its rights to use the ‘Reliance’ brand name as stipulated by the NCLT order, given that it forms part of the assets acquired under the resolution plan. The company also reiterated its intention to eventually rebrand the acquired entity under the ‘Induslnd’ name, aligning with its corporate identity.
The NCLT has directed both parties to submit written submissions within the next two days and scheduled that next hearing for September 3, 2024. The outcome of this hearing could set a significant precedent regarding the usage rights of brand names in insolvency resolutions, particularly in cases involving iconic corporate identities.