In a major legal victory, Dubai’s highest court, the Court of Cassation, has ruled in favour of Honasa Consumer, the parent company of Mamaearth, in its prolonged dispute with former distributor RSM General Trading LLC.
The ruling overturns a previous judgment by the Dubai Court of Appeal, which had ordered Honasa to pay approximately AED 25 million in compensation to RSM for alleged unlawful termination of its distributorship. The Court of Cassation found the Appeal Court’s decision to be “flawed, defective, and lacking reasoning,” directing that the case be reconsidered by a new panel of judges.
In a stock exchange filing, Honasa Consumer confirmed the latest court ruling, stating, “The Highest Court of Dubai, UAE (Cassation Court) has issued its final judgment upon the appeal challenging the judgment passed by the Court of Appeal, Dubai, UAE.”
The legal battle has also seen developments in India. Last year, the Delhi High Court directed RSM General Trading to withdraw its execution proceedings in Dubai and deposit Rs 57.17 crore, plus interest, with the court registry in favor of Honasa.
Meanwhile, Honasa Consumer has announced the allocation of 24.16 lakh stock options, valued at Rs 57 crore, under its Employee Stock Options Plan (ESOP) – 2018. With the case now heading back to the Dubai Appeal Court under a fresh panel of judges, further legal proceedings are expected in the coming months.