A Dubai court has asked for the attachment Mamaearth parent Honasa Consumer Ltd‘s of assets as part of an ongoing legal dispute with RSM General Trading LLC.

What Happened: Honasa Consumer in a regulatory filing said that the Dubai Court had issued the ruling on October 1 in the ongoing litigation between the two companies.

RSM had initiated a lawsuit against Honasa, alleging that its distributorship was unlawful terminated. RSM had also requested a precautionary attachment of Honasa’s assets in the United Arab Emirates and the cancellation of its trading license.

The Dubai Court approved the attachment of Honasa’s assets but declined to revoke its trading license. Both parties lodged objections against the order, which were subsequently dismissed by the court.

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Honasa said the order won’t have any financial implications for the company due to a favourable judgement passed by the Delhi High Court in August. The Delhi High Court had directed RSM to withdraw any execution proceedings filed in Dubai and deposit around ₹57 crore to the Delhi High Court registry.

Honasa is in the process of initiating contempt proceedings against RSM for non-compliance with the Delhi High Court’s judgement. The company also intends to challenge the Dubai Court’s order.

Price Action: Shares of Honasa Consumer were down 4.42% to ₹427.45 on Friday afternoon.

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