Just a day after a Dubai court upheld its earlier ruling to attach assets of Mamaearth’s parent company in the region, Honasa Consumer asserted that it does not own any assets in the UAE.
In͏͏ an͏͏ exchange͏͏ filing͏͏ today,͏͏ Honasa͏͏ Consumer͏͏ highlighted͏͏ that͏͏ its͏͏ Dubai͏͏ subsidiary͏͏ has͏͏ been͏͏ exempt͏͏ from͏͏ the͏͏ attachment͏͏ order.
Rejection͏͏ of͏͏ Grievances͏͏ by͏͏ Dubai Court:
This͏͏ development͏͏ comes͏͏ a͏͏ day͏͏ after͏͏ Honasa͏͏ announced͏͏ that͏͏ the͏͏ Court͏͏ of͏͏ Merits͏͏ in͏͏ Dubai͏͏ rejected͏͏ the͏͏ grievance͏͏ filed͏͏ by͏͏ Honasa͏͏ and͏͏ its͏͏ former͏͏ distributor,͏͏ RSM͏͏ General͏͏ Trading.
Continue͏͏ Exploring:͏͏ Dubai court orders attachment of Honasa Consumer’s͏͏ assets͏͏ amid͏͏ distributor͏͏ dispute
These͏͏ grievances͏͏ involved͏͏ RSM͏͏ General͏͏ Trading’s͏͏ request͏͏ to͏͏ revoke͏͏ the͏͏ trading͏͏ licence͏͏ of͏͏ Honasa’s͏͏ subsidiary͏͏ and͏͏ Honasa’s͏͏ challenge͏͏ to͏͏ the͏͏ attachment͏͏ of͏͏ its͏͏ assets͏͏ in͏͏ the͏͏ UAE.
The͏͏ Dubai͏͏ court’s͏͏ initial͏͏ ruling͏͏ was͏͏ issued͏͏ on͏͏ June͏͏ 6,͏͏ prompting͏͏ both͏͏ parties͏͏ to͏͏ file͏͏ appeals͏͏ against͏͏ the͏͏ order.
The͏͏ parent͏͏ company͏͏ of͏͏ the͏͏ D2C͏͏ brand͏͏ reiterated͏͏ today͏͏ that͏͏ it͏͏ will͏͏ file͏͏ a͏͏ contempt͏͏ petition͏͏ against͏͏ RSM͏͏ in͏͏ the͏͏ Delhi͏͏ court͏͏ for͏͏ failing͏͏ to͏͏ comply͏͏ with͏͏ the͏͏ Delhi͏͏ High͏͏ Court’s͏͏ order͏͏ from͏͏ August.
For͏͏ those͏͏ unfamiliar,͏͏ the͏͏ Delhi͏͏ High͏͏ Court’s͏͏ August͏͏ order͏͏ mandated͏͏ that͏͏ RSM͏͏ General͏͏ Trading͏͏ not͏͏ only͏͏ revoke͏͏ its͏͏ execution͏͏ proceedings͏͏ in͏͏ Dubai͏͏ against͏͏ Honasa͏͏ but͏͏ also͏͏ deposit͏͏ INR͏͏ 57.17͏͏ crore,͏͏ along͏͏ with͏͏ accrued͏͏ interest,͏͏ in͏͏ the͏͏ registry͏͏ of͏͏ the͏͏ Delhi͏͏ High͏͏ Court͏͏ until͏͏ the͏͏ execution͏͏ proceedings͏͏ in͏͏ Dubai͏͏ are͏͏ withdrawn.
Continue͏͏ Exploring:͏͏ Delhi͏͏ HC͏͏ orders͏͏ Honasa Consumer’s͏͏ UAE͏͏ distributor͏͏ to͏͏ withdraw͏͏ execution͏͏ proceedings͏͏ in͏͏ Dubai
The͏͏ order͏͏ indicated͏͏ that͏͏ if͏͏ the͏͏ Dubai͏͏ court͏͏ continues͏͏ to͏͏ enforce͏͏ the͏͏ ruling͏͏ against͏͏ Honasa,͏͏ the͏͏ Delhi͏͏ High͏͏ Court͏͏ will͏͏ disburse͏͏ the͏͏ funds͏͏ to͏͏ the͏͏ D2C͏͏ brand.
Central͏͏ to͏͏ this͏͏ issue͏͏ is͏͏ Honasa’s͏͏ decision͏͏ to͏͏ sever͏͏ its͏͏ ties͏͏ with͏͏ RSM͏͏ General͏͏ Trading,͏͏ which͏͏ claims͏͏ that͏͏ Honasa͏͏ abruptly͏͏ terminated͏͏ the͏͏ distributorship͏͏ agreement.
RSM͏͏ General͏͏ Trading͏͏ served͏͏ as͏͏ Honasa’s͏͏ distributor͏͏ in͏͏ the͏͏ Middle͏͏ East͏͏ and͏͏ African͏͏ regions͏͏ from͏͏ July͏͏ 30,͏͏ 2020,͏͏ to͏͏ January͏͏ 17,͏͏ 2023.
Compensation͏͏ Ordered͏͏ by͏͏ UAE͏͏ Court:
In͏͏ May,͏͏ the͏͏ UAE’s͏͏ Court͏͏ of͏͏ Full͏͏ Commercial͏͏ Jurisdiction͏͏ ruled͏͏ that͏͏ Honasa͏͏ must͏͏ compensate͏͏ RSM͏͏ General͏͏ Trading͏͏ with͏͏ AED͏͏ 25.07͏͏ million͏͏ (around͏͏ INR͏͏ 57͏͏ crore)͏͏ in͏͏ damages.
Furthermore,͏͏ the͏͏ court͏͏ instructed͏͏ the͏͏ company͏͏ to͏͏ pay͏͏ legal͏͏ interest͏͏ at͏͏ a͏͏ rate͏͏ of͏͏ 5%͏͏ (from͏͏ the͏͏ date͏͏ the͏͏ judgment͏͏ becomes͏͏ final͏͏ until͏͏ full͏͏ payment͏͏ is͏͏ received)͏͏ and͏͏ AED͏͏ 1,000͏͏ (INR͏͏ 22,665)͏͏ for͏͏ attorney͏͏ fees.
Honasa’s͏͏ Diverse͏͏ Product͏͏ Portfolio:
Founded͏͏ in͏͏ 2016͏͏ by͏͏ the͏͏ husband-and-wife͏͏ duo͏͏ Varun͏͏ and͏͏ Ghazal͏͏ Alagh,͏͏ Honasa͏͏ offers͏͏ a͏͏ product͏͏ portfolio͏͏ that͏͏ includes͏͏ six͏͏ beauty͏͏ and͏͏ personal͏͏ care͏͏ brands:͏͏ Mamaearth,͏͏ The͏͏ Derma͏͏ Co.,͏͏ Aqualogica,͏͏ Ayuga,͏͏ BBlunt,͏͏ and͏͏ Dr.͏͏ Sheth’s.
