Honasa Consumer Wins Arbitration Rectification, Award Increased to AED 9.91 Million
Honasa Consumer secured a favorable rectification order in its arbitration against RSM. The award was revised upwards to AED 9.91 million (approx. ₹25.53 crore). Corrections included increased loss of profits (AED 7.32 million) and adjusted substitution costs. RSM must also cover damages from Dubai court proceedings.
The arbitration award involves a significant monetary sum and protective clauses, which could positively impact the company's financial position and reduce legal risks. However, the impact is moderate as it relates to a specific dispute.
The company received a favorable rectification order in arbitration proceedings, leading to an upward revision of the awarded amount and additional protective clauses.
Honasa Consumer Limited has announced a favorable development in its arbitration proceedings against RSMM General Trading LLC (RSM). Following an initial Arbitral Award on May 15, 2026, the company filed an application on June 12, 2026, to rectify certain computational and clerical errors. The Arbitral Tribunal, in an order dated June 26, 2026, allowed this application in favor of Honasa.
The key corrections include an upward revision of the loss of profits award from AED 4.34 million to AED 7.32 million due to a computational error related to financial years. Additionally, the substitution costs awarded have been corrected from AED 1,060,584 to AED 744,758. A significant addition is a directive protecting Honasa against Dubai proceedings, requiring RSM to pay damages equivalent to any amount sought against Honasa by Dubai court decisions concerning the Authorized Distributor Agreement (ADA) termination.
Consequently, the final amended award directs RSM to pay Honasa a total of AED 9,918,514 (approximately ₹25.53 crore). The award also includes a provision for post-award interest if the amount remains unpaid after 30 days and indemnification for any financial recoveries made against Honasa in related Dubai court proceedings. This order was received by the company on June 26, 2026, at 12:42 pm IST.
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