Honasa Consumer, the parent company of Mamaearth, said the Merit Court in Dubai had dismissed the complaint filed by the company and RSM General Trading, its distributor in the Middle East and Africa region, and ordered them to attach supporting documents.Indian Securities The exchange was notified. Refused to revoke Honasa Consumer General Trading LLC’s trading license and sold Honasa Consumer’s assets in the UAE.
A Dubai court (October 1) revoked the trading license of Honasa Consumer General Trading LLC in Dubai, UAE, stating that the company is a separate legal and financial institution and is not affiliated with Honasa. I refused.
In addition, the Dubai Court ordered the attachment of Honasa’s assets in Dubai, UAE due to the compensation of AED 25 million (estimated at Rs 570 million) ordered by the Dubai Court of First Instance.
RSM General Trading was Honasa’s distributor in the Middle East and Africa region from July 30, 2020 to January 17, 2023.
It should be noted that Honasa Consumer had discontinued its relationship with RSM General Trading several months before listing on the Indian market.
In July 2023, RSM General Trading LLC filed a lawsuit in the Dubai Courts seeking illegal termination of the distributorship agreement by Honasa Consumer Limited and in the Dubai Merit Court seeking seizure of Honasa’s assets in the United Arab Emirates. had filed a preventive seizure application against Honasa. Revoke Honasa Consumer General Trading LLC’s trading license.
Subsequently, on June 6, 2024, a Dubai court allowed the seizure of Honasa Consumer Limited’s assets in the UAE, but declined to revoke Honasa Consumer General Trading LLC’s trading license.
Honasa Consumer Limited and RSM General Trading LLC each filed complaints against the above preventive orders.
In Dubai, a creditor can seek a preventive seizure order, a temporary seizure of a debtor’s assets such as bank accounts, if the debtor does not have permanent residence in the UAE.
On May 16, 2024, Honasa Consumer moved the Delhi HC seeking temporary restraining order (a court order to prevent something from happening) and anti-enforcement protection against the Dubai court order.
Then, in late August, the Delhi High Court granted an interim injunction against a UAE court’s order ordering RSM General Trading to pay damages worth 56.6 Cr for unfair termination. The court also directed RSM General Trading to withdraw enforcement proceedings in Dubai courts.
In a notification to the stock exchanges, Mr. Honasa said that the latest Dubai court order (dated October 1) is based on the Delhi High Court’s judgment ordering RSM to withdraw the enforcement proceedings brought against it in Dubai, United Arab Emirates. The company pointed out that this would not have any economic impact on Honasa. 5.7 billion (approximately) in the registry of the Delhi High Court to deposit Rs.
The Delhi High Court also ordered a deposit of Rs 200 million to be paid if the enforcement proceedings brought by RSM in Dubai are successful. 57 billion (approximately) will be released to Honasa.
“As RSM has not withdrawn its enforcement proceedings in Dubai, United Arab Emirates and has not deposited (approximately) Rs 570 crore in the registry of Delhi High Court, Honasa has filed a contempt suit against RSM in Delhi High Court. “For non-compliance with the Delhi High Court’s judgment.”
It further added that as Honasa plans to appeal this order in Dubai, the order will not have any negative economic impact on Honasa until this appeal process is completed.