In dispute b/w ADAVL and IIHL- Hindujas inform NCLT that following acquisition, Reliance Capital will become IndusInd

Synopsis:

Hindujas inform NCLT that Reliance Capital will become IndusInd, following acquisition. NCLT schedules hearing on September 3rd, seeking recall of order allowing IndusInd to acquire Reliance Capital.

The Hinduja Group-owned IndusInd International Holdings Ltd (IIHL) has clarified that Reliance Capital will be rebranded under the ‘IndusInd’ name after IIHL takes over the insolvent company.- Anil Dhirubhai Ambani Ventures Ltd (ADAVL) is seeking to restrain IIHL from using the ‘Reliance’ brand, arguing that the brand licensing agreement between ADAVL and Reliance Capital expired in April 2024.- IIHL’s counsel stated that the transition will take time as it involves various financial services companies under Reliance Capital, millions of policyholders, and approvals from the insurance regulator. However, IIHL has no desire to continue using the ‘Reliance’ brand. – The National Company Law Tribunal (NCLT) has given the parties two days to file written submissions and posted the matter for hearing on September 3.

1. What is the key dispute between ADAVL and IIHL regarding the use of the ‘Reliance’ brand?

Yes, that’s correct. IIHL has clarified that it has no intention to continue using the ‘Reliance’ brand and that the transition process will take time due to the involvement of various financial services companies under Reliance Capital, millions of policyholders, and regulatory approvals. The brand licensing agreement between ADAVL and Reliance Capital has expired, and ADAVL is seeking to prevent IIHL from using the ‘Reliance’ brand. The matter is currently being heard by the National Company Law Tribunal (NCLT).

2. How long does IIHL plan to use the ‘Reliance’ brand during the transition period after taking over Reliance Capital?

According to the article, the Hindujas (who own IIHL) have clarified that they do not want to continue using the ‘Reliance’ brand after taking over Reliance Capital. The article states:

“The Hindujas have no desire whatsoever to carry on business under the brand ‘Reliance’. 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,” Venkatesh Dhond, senior counsel appearing for the Hindujas said.However, the article also mentions that the implementation process will take time, as there are various financial services companies under Reliance Capital, millions of policyholders, and approvals required from the regulator IRDAI. So while the Hindujas want to transition away from the ‘Reliance’ brand as soon as possible, the article does not provide a specific timeline for how long they plan to use the ‘Reliance’ brand during the transition period. The article only states that the NCLT had earlier allowed IIHL to use the brand for 3 years until the resolution plan is implemented.