Honasa Consumer Limited, which owns the Mama Earth brand, said on Saturday that it would not seize assets as it has no assets in the United Arab Emirates (UAE), but a Dubai court ruled that it would proceed with RSM General Trading LLC. A lawsuit ordered such action. Regarding termination of distributor agreement.
The company, which also owns The Derma Co and Aqualogica brands, announced on Friday that a Dubai court had ordered the seizure of its assets in the UAE, but refused to revoke Honasa Consumer General Trading LLC’s trading license.
“No company assets will be attached as the company has no assets in the UAE,” the company said in a filing on Saturday.
It added that Honasa Consumer General Trading LLC, a subsidiary of Honasa Consumer Ltd, was exempted from the order.
RSM General Trading LLC (RSM) and Honasa Consumer Ltd (Honasa) filed a statement of complaint against the preventive seizure order passed by the Dubai Merit Court in the UAE on June 6, 2024.
Dubai courts dismissed both appeals filed by RSM and Honasa.
“In view of the AED 25 million compensation (debt) ordered by the Dubai Court of First Instance, the Dubai Courts will seize Honasa’s assets in Dubai, UAE,” Honasa said in a regulatory filing on Friday. I ordered him to do so.” The court dismissed the complaint filed.
At the same time, the court also dismissed a complaint filed by RSM, stating that “Honasa Consumer General Trading LLC is a separate legal and financial entity and is not affiliated with Honasa.”
In a June 6 order, a Dubai court approved the seizure of Honasa Consumer Ltd’s assets in the UAE, but added that it refused to revoke Honasa Consumer General Trading LLC’s trading license.
The order follows a preventive seizure application filed by RSM with the Merit Court in Dubai, United Arab Emirates, against Honasa Consumer Ltd seeking seizure of its assets in the UAE and cancellation of Honasa Consumer General Trading LLC’s trading license. The order has been issued.
RSM General Trading LLC had filed suit in the Dubai Courts seeking unlawful termination of the distributorship agreement by Honasa Consumer Ltd.
Honasa said it plans to appeal the latest order in Dubai and will not see any negative financial impact until the appeal process is completed.
The company further said that in August, the Delhi High Court ordered RSM to deposit (approximately) 57 billion rupees in the registry of the Delhi High Court and to withdraw the enforcement proceedings filed in Dubai, United Arab Emirates. Announced.
“The Delhi High Court has further ordered that a deposit of Rs 57 million be released to Honasa if the enforcement proceedings brought by RSM in Dubai are successful,” the filing said.
Further, โAs RSM has not withdrawn its enforcement proceedings in Dubai, United Arab Emirates and has not deposited (approximately) Rs 57 billion in the registry of the Delhi High Court, Honasa has filed a contempt suit against RSM in a Delhi court. We are in the process of waking up,” he said. to the High Court for non-compliance with the Delhi High Court judgment. โ
Published October 5, 2024 at 3:24 PM IST
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