Beauty and personal care products retailer Honasa Consumer on Sunday received an order from the Dubai Court of Appeal, which rejected appeals by both RSM General and Honasa Consumer over the ongoing distribution termination fiasco.
The court also ordered Mamarth to seize the company’s assets in the UAE, and refused to revoke the trading license of Honasa Consumer General Trading, Honasa’s Dubai unit.
However, the Delhi High Court directed RSM General, the former distributor of Mama Artha products in the MENA region, to file an appeal in the Appellate Court as the Appellate Court orders were unenforceable. At RSM’s request, the Court of Appeal suspended the cautionary proceedings.
Honasa will not have any material financial impact due to the Delhi High Court order and Honasa consumers do not have any assets in the UAE, the company said in the filing.
Shares of Honasa Consumer traded down 1.5% at Rs 255.75 on the NSE on Monday afternoon.
The development comes after the Delhi High Court issued an injunction under Article 9 to protect Honasa consumers, restraining RSM from enforcing the Dubai court’s decision.
RSM appealed the decision, after which the Delhi High Court directed RSM to request the Dubai Appellate Court to stay the Dubai Court’s judgment. It also directed the RSM not to enforce the Dubai judgment in the UAE or any other country until the Indian appeal is resolved.
Honasa also appealed to the Court of Cassation against the original decision of the Dubai Court. While this appeal is pending, RSM cannot initiate any enforcement proceedings against Honasa in the UAE.