Honasa Consumer Limited has received a favorable final award from the Sole Arbitrator in its dispute with RSMM General Trading LLC. The Arbitral Tribunal ruled that the company’s termination of the distribution agreement was valid, injuncted RSMM from pursuing further legal action in Dubai, and ordered RSMM to pay a total of AED 7,254,340 (approximately INR 18.88 crore) in damages and costs.
Arbitral Award Details
On May 14, 2026, the Sole Arbitrator, Justice (Retd.) Hrishikesh Roy, issued a final award in the long-standing legal dispute between the company and RSMM General Trading LLC. The tribunal affirmed that the company acted lawfully in its termination of the Authorised Distributor Agreement and confirmed its own jurisdiction to resolve the matter, effectively overriding previous conflicting legal proceedings in Dubai.
Legal and Financial Relief
The tribunal’s decision provides significant relief to the company. RSMM has been issued a permanent prohibitory injunction, preventing them from initiating or continuing any legal actions in Dubai courts or any other forums that breach the governing dispute resolution clauses. Financially, the company was awarded the following:
- AED 1,559,848 for legal costs incurred in Dubai and India.
- AED 1,060,584 for substitution-related costs.
- AED 4,340,000 for loss of profits.
- INR 76,50,875 for arbitration proceedings costs.
Enforcement and Future Interest
The total monetary award amounts to AED 7,254,340. If the awarded amounts are not settled within 30 days of the pronouncement, the respondent is liable for post-award interest. This interest will be calculated based on EIBOR + 2% per annum for the AED components and the SBI Prime Lending Rate + 2% for the INR component, ensuring compensation for potential payment delays.
Source: BSE
