Honasa Consumer Ltd, which owns the Mamaearth, brand, on Saturday said there will be no attachment of its goods in the UAE as it has no assets there, although the Dubai court has ordered such action in its ongoing case with RSM General Trading LLC. upon completion of distribution.
The company, which also owns Derma Co and Aqualogica brands, said on Friday that a Dubai court had ordered the attachment of its assets in the UAE but refused to cancel the trading license of Honasa Consumer General Trading LLC.
In a filing on Saturday, the company said, “… There will be no attachment of the company’s assets, as the company has no assets located in the UAE.” Honasa Consumer General Trading LLC, a subsidiary of Honasa Consumer Ltd is exempted from this order, it added.
RSM General Trading LLC (RSM) and Honasa Consumer Ltd (Honasa) had filed appeals against the attachment order passed by the Labor Court in Dubai, UAE on June 6, 2024. The Dubai court rejected both the appeals filed by RSM and Now.
In a regulatory filing on Friday, Honasa said, “The Dubai Court has ordered the attachment of Honasa’s property in Dubai, UAE due to the AED 25 million compensation (debt) ordered by the Court of First Instance, Dubai.” The court dismissed the statement of objections filed by it.
At the same time, the court also dismissed the complaint filed by RSM and “refused to cancel the trading license of Honasa Consumer General Trading LLC in Dubai, UAE on the grounds that Honasa Consumer General Trading LLC is a separate legal and financial entity and a separate legal and financial entity.” is not related to Honasa.” In an order dated June 6, the Dubai court had allowed the attachment of Honasa Consumer Ltd’s assets in the UAE, however, it refused to cancel the trading license of Honasa Consumer General Trading LLC, it added.
The order came from an attached petition filed by RSM against Honasa Consumer Ltd before the Court of Jurisdiction in Dubai, UAE for attachment of the company’s assets in the UAE and cancellation of the trading license of Honasa Consumer General Trading LLC.
RSM General Trading LLC had filed a lawsuit in the Dubai court for the illegal termination of its distribution by Honasa Consumer Ltd.
Honasa said it will appeal the latest Dubai decision, and that it will not have a negative financial impact until the end of the trial.
The company also said that in August the Delhi High Court had ordered RSM to withdraw any execution proceedings filed in Dubai, UAE and deposit (approximately) Rs 57 crore in the Delhi High Court’s book.
“The Delhi High Court has also ordered that if the execution proceedings filed by RSM in Dubai are successful, a sum of Rs 57 crore will be released to Honasa,” the petition said.
It further said, “Since RSM has not withdrawn the killings in Dubai, UAE and has not deposited Rs 57 crore (approx) in the Delhi High Court, Honasa is in the process of filing a contempt case against RSM before the Delhi High Court for violating to comply with the judgment of the Delhi High Court.”
