Dubai Court Orders Asset Attachment in Honasa-RSM Dispute

The Dubai court ordered the attachment of Honasa Consumer Ltd's assets in the UAE amid litigation with RSM General Trading LLC, while rejecting the cancellation of Honasa's trading license citing it as a separate entity. Honasa plans to appeal the decision, asserting no immediate financial impact.

A Dubai court has ruled in favor of asset attachment against Honasa Consumer Ltd in a legal tussle with RSM General Trading LLC, while declining to revoke the trading license of Honasa Consumer General Trading LLC, recognizing it as an independent legal entity.

The judgement follows a precautionary attachment application by RSM, aimed at securing a 25 million AED debt claim. Despite the setback, Honasa intends to appeal the order, maintaining there will be no negative financial ramifications until the conclusion of legal proceedings.

Previously, the Delhi High Court had instructed RSM to halt execution processes in Dubai and to lodge approximately Rs 57 crore with the court's registry, pending further developments. Honasa is now set to file contempt proceedings against RSM for non-compliance.

(With inputs from agencies.)