Favorable Ruling in Arbitration: Honasa Consumer Directed to Collect Over AED 9.9 Million from RSM General Trading LLC
Honasa Consumer Limited has secured a favorable outcome following an Arbitral Tribunal's decision regarding its ongoing dispute with RSMM General Trading LLC (RSM). The Tribunal, having considered an application filed by the company under Section 33 of the Arbitration and Conciliation Act, 1996, allowed the application on June 26, 2026, leading to significant corrections and enhancements in the final Award.The initial arbitration between Honasa Consumer Limited and RSM covered breaches of the Authorized Distributor Agreement (ADA). The subsequent ruling addressed computational and clerical errors present in the original Award dated May 14, 2026, resulting in revised financial demands against RSM.
Key Corrections Achieved Through Section 33 Order
The rectification brought forth by Honasa Consumer Limited resulted in upward revisions across several critical components of the award, transforming the previously awarded amounts into corrected figures:| Category | Original Award Amount | Corrected Amount (Section 33 Order) | Change Type |
|---|---|---|---|
| Loss of Profits | AED 4.34 million | AED 7.32 million | Upward Revision |
| Substitution Costs | AED 1,060,584 | AED 744,758 | Correction/Alignment |
The Tribunal also imposed a dispositive direction requiring RSM to pay damages aggregating any amount sought to be recovered from Honasa Consumer Limited pursuant to any Dubai court decisions related to the termination of the ADA.
Summary of Final Amended Award Directives
Pursuant to the Section 33 Order, the Arbitral Tribunal directed several monetary and declaratory reliefs against RSM General Trading LLC (RSM). The final directives mandate a total payout from RSM to Honasa Consumer Limited, along with defined terms regarding payment timelines and litigation protection.The key components of the amended award are detailed below:
- Monetary Payout: RSM is directed to pay Honasa Consumer Limited a total amount of AED 9,918,514, which is approximately INR 25,53,55,217.67.
- Interest Penalty: A post-award interest will apply if the specified amount remains unpaid by RSM after a period of 30 days.
- Indemnification/Damages: The ruling mandates that RSM is liable to pay damages equivalent to any financial recoveries made against Honasa Consumer Limited in related Dubai court proceedings concerning the ADA termination.
The tribunal's decision effectively addressed procedural breaches, including issuing a permanent prohibitory injunction restraining RSM from pursuing or continuing any proceedings before courts in Dubai or any other forum, which violate the dispute resolution and exclusive jurisdiction clauses of the ADA.
HONASA Stock Price Movement
On Thursday, Honasa Consumer Limited shares gained 0.25%, settling at ₹417.7 as traders concluded the session. The stock traded a volume of 7.67 million shares, remaining significantly lower than its recorded annual high of ₹438.35.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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