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Informist, Tuesday, Feb. 17, 2026

 

NEW DELHI – A Dubai Court of Appeal has lowered the damages payable by Honasa Consumer Ltd. to RSM General Trading LLC. from 25.07 million dirhams to 1.7 million dirhams, the Indian company said in a notice to the stock exchanges. The Court of Appeal noted that RSM General had breached certain contractual obligations, particularly failing to meet expected sales performance during the agreement term, according to the filing.

 

However, dissatisfied with the appeal court's verdict and to ensure that it does not have to pay any damages, Honasa Consumer said that it shall file an appeal against the order before the Cassation Court, the highest court of Dubai, within a period of 30 days and in accordance with the procedural laws of the United Arab Emirates.

 

In 2020, the two companies had signed an agreement under which RSM General Trading was to be the authorised distributor for Honasa Consumer's products in Dubai. However, a dispute arose between the two after RSM General filed a lawsuit against Honasa Consumer, citing unlawful termination of the distributorship. Following this, in 2024, a Dubai Court of First Instance asked Honasa Consumer to pay RSM General Trading a compensation of 25.07 million dirhams.

 

Thereafter, Honasa Consumer sought an injunction from the high court against RSM General Trading from enforcing the decree passed by the Dubai Court of First Instance so that it can proceed to invoke the contractually envisaged remedy of arbitration to resolve its disputes. Allowing the petition, the high court granted an anti-enforcement injunction to Honasa Consumer restraining RSM General Trading from enforcing any judgment or decree passed by the Dubai courts.

 

Last year, the Supreme Court of India allowed Honasa Consumer's petition for the appointment of a sole arbitrator to adjudicate on the dispute between the company and RSM General Trading. Due to the pendency of the arbitration proceedings in India, any judgement passed by the Dubai courts will not be executable in India till the arbitration proceedings are concluded, said Honasa Consumer.

 

At 1309 IST, the shares of Honasa Consumer were down 2.3% at INR 299.00 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Ashish Shirke

 

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