Honasa Consumer Limited has received a judgment from the Dubai Court of Appeal in its ongoing litigation with RSM General Trading LLC. The Court significantly reduced the previously awarded compensation amount from approximately AED 25 Million to AED 1.7 million. The Company plans to appeal this judgment to the Cassation Court within 30 days. Crucially, an anti-enforcement injunction granted by the Delhi High Court in related Indian arbitration proceedings remains in effect.
Update on Dubai Court of Appeal Judgment
Honasa Consumer Limited provided an update regarding the ongoing litigation with RSM General Trading LLC in the Dubai Court. The Court of Appeal passed a Judgment on February 11, 2026, which was received by the Company on February 16, 2026.
This judgment follows a prior ruling by the Cassation Court which had referred the matter back to the Court of Appeal for rehearing. The recent ruling by the Court of Appeal has resulted in a significant reduction of the liability. The original award amount of approximately AED 25 Million has been reduced to an award amount of AED 1.7 million, covering compensation for material and moral damages to RSM.
The Court of Appeal also observed that RSM had breached certain contractual obligations, specifically failing to meet expected sales performance during the agreement term.
Planned Legal Recourse and Status
The Company has confirmed its intention to challenge this decision by filing an appeal against the Judgment before the Cassation Court, which is the Highest Court of Dubai, within the mandatory period of 30 days, adhering to UAE procedural laws.
Furthermore, Honasa Consumer Limited had previously filed a Petition under Section 9 of the Arbitration and Conciliation Act, 1996, before the Hon’ble Delhi High Court. The Delhi High Court allowed this petition and granted an anti-enforcement injunction, restraining RSM from enforcing any judgment or decree passed by the Dubai Courts.
Impact on Arbitration Proceedings
It is important to clarify that due to the pendency of the arbitration proceedings instituted by the Company in India, any judgment or orders passed by the Dubai Courts will not be executable in India until those arbitration proceedings are concluded. Similarly, enforceability in the UAE remains conditional upon the decision of the Cassation Court regarding the appeal filed by the Company.
Financial and Management Impact
In relation to key management personnel or promoters, the Company has confirmed there is No Financial Impact resulting from these proceedings. Furthermore, in the event of any settlement of these proceedings, the Company has stated there will be No Financial Impact on the listed entity’s financial position.
Source: BSE
