Honasa Wins Dubai Court Case Against Former Distributor RSM

Post by: Bandan Preet

Photo: Instagram

In a big legal win, the top court in Dubai — the Court of Cassation — has ruled in favor of Honasa Consumer, the company that owns the popular skincare brand Mamaearth. This decision comes after a long legal fight with Honasa’s former distributor in Dubai, RSM General Trading LLC.

Earlier, the Dubai Court of Appeal had asked Honasa to pay nearly 25 million dirhams (around Rs 57 crore) to RSM. The court said Honasa had unfairly ended their business agreement. But now, the Court of Cassation has said that the Appeal Court's decision was wrong. The court called the earlier judgment “flawed, defective, and lacking reasoning.” Because of this, it has ordered that the case be looked at again by a new group of judges in the Dubai Appeal Court.

In a formal update to the stock exchange, Honasa Consumer confirmed this latest decision. They said, “The Highest Court of Dubai, UAE (Cassation Court) has issued its final judgment on the appeal challenging the judgment passed by the Court of Appeal, Dubai, UAE.”

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This legal fight is also going on in India. Last year, the Delhi High Court told RSM General Trading to stop its legal steps in Dubai and instead deposit Rs 57.17 crore plus interest in the court’s account for Honasa.

Meanwhile, Honasa Consumer has also announced something important for its employees. The company has given out 24.16 lakh stock options (company shares) worth around Rs 57 crore under its Employee Stock Options Plan (ESOP) 2018.

Though this is a major win for Honasa, the legal case is not fully over yet. The matter will now go back to the Dubai Appeal Court, where a new panel of judges will review everything again. More legal updates are expected in the coming months.

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