Honasa Shares Jump Sharply After Favourable Court Order

Honasa Consumer has secured a favourable court ruling against RSM General Trading.

What Happened: The Delhi High Court has instructed RSM General Trading LLC to revoke its execution proceedings in Dubai against Honasa Consumer.

These proceedings were associated with a lawsuit RSM General Trading had filed, accusing Honasa of unlawfully terminating its distributorship. The court has further ordered RSM to deposit ₹57.17 crore, equivalent to the damages claimed, with the Delhi High Court’s registry.

The verdict was delivered on August 20. This decision by the court is anticipated to positively impact Honasa’s financial performance as it safeguards against the execution of the decree passed by the Court of First Instance in the United Arab Emirates, Dubai.

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The court has stipulated that the deposited sum will remain with the Registry until RSM furnishes proof of withdrawal of the execution proceedings. If the Dubai court approves the execution of the decree against Honasa, the registry will release the amount to the company.

Honasa Consumer Limited had lodged a petition under Section 9 of the Arbitration & Conciliation Act, 1996 against RSM General Trading LLC in the Delhi High Court. RSM General Trading LLC had filed a lawsuit in the Dubai Court for unlawful termination of its distributorship by Honasa.

Price Action: Honasa’s share price was up 0.49% to trade at ₹467.95 on Wednesday afternoon.

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