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Beauty and personal care products retailer Honasa Consumer on Sunday received order from the Dubai Appeal Court, which rejected both RSM General’s and Honasa Consumer’s appeals in the ongoing distributorship termination fiasco. 

The court ordered Mamaearth to attach the company’s assets in the UAE, as well as refused to cancel the trading license of Honasa’s Dubai entity, Honasa Consumer General Trading, according to an exchange filing. 

However, the Appeal Court’s orders are unenforceable as the Delhi High Court had directed RSM General, a former distributor of Mamaearth products in the MENA region, to file a request before the Appeals Court. Upon RSM’s request, the Appeal Court suspended the precautionary attachment proceedings.  

There shall be no material financial impact on Honasa due to the Delhi High Court Order and, since Honasa Consumer has no assets located in UAE, the company stated in the filing.

Shares of Honasa Consumer were trading 1.5% lower at Rs 255.75 apiece on NSE on Monday noon.

The development follows the Delhi High Court granting an order under Section 9 to protect Honasa Consumer, including an injunction preventing RSM from enforcing the Dubai Court judgment.

RSM appealed this decision, following which the Delhi HC directed RSM to request the Appeal Court in Dubai to suspend the Dubai Court judgment. It also instructed RSM not to enforce the Dubai judgment in the UAE or any other country until the Indian appeal is resolved.

Honasa has also appealed the original judgment from the Dubai Court to the Cassation Court. While this appeal is ongoing, RSM cannot start any execution proceedings against Honasa in the UAE.