Anil Dhirubhai Ambani Ventures (ADAVPL), a Reliance Group company, has filed an interim application in the National Company Law Tribunal (NCLT) to stop Hindujas-owned IndusInd International Holdings (IIHL) from using ‘Reliance’ brand name after the implementation of resolution plan.

The NCLT, while approving IIHL’s resolution plan on February 27, had allowed the company to use the Reliance brand for three years from the date of approval of the plan for the purpose of implementing the resolution plan transaction.

NCLT will hear the matter on Tuesday.

Brand agreement

ADAVPL, in its application, has argued that the company was not heard while allowing the IIHL to use the brand for three years, as it was not a party to the resolution plan.

It stated that Anil Dhirubhai Ambani Ventures and Reliance Capital, which is currently under the Insolvency Resolution Process, entered into a Brand Licensing Agreement on April 1, 2014. Under the agreement, ADAVPL granted RCap a non-exclusive, royalty-free licence to use the brand for 10 years, which has also expired.

ADAVPL has argued that the agreement does not create any interest in the brand in favour of RCap, but only allows permissive use thereof. Given this position, the brand is not an “asset” of RCap within the meaning of the term as used in Section 18 of the Insolvency and Bankruptcy Code, and ADAVPL has requested the cessation of brand usage by IIHL immediately after implementation of the resolution plan, said the petition.

According to sources close to the development, the brand ‘Reliance’ is equally owned by Mukesh Ambani and Anil Ambani, and the same cannot be allowed to be used by any other company or individual.

Moreover, the Hindujas have completed the registration of their own brand for the RCap companies in Mauritius.

Earlier this month, NCLT directed the RBI and the Department of Industrial Policy and Promotion to consider approval for IIHL application for closing its deal to acquire RCap. IIHL has already deposited ₹2,750 crore in the offshore and onshore escrow account of Committee of Creditors and submitted the binding term sheet.