Honasa Consumer received a favorable arbitration order, increasing its award by AED 5.58 million to AED 9.92 crore (₹25.54 crore). The company also secured a permanent injunction against its counterparty.
Honasa Consumer Secures Favorable Arbitration Order, Award Revised Upwards
Honasa Consumer Limited has received a favorable order under Section 33 of the Arbitration and Conciliation Act, 1996, leading to an upward revision of its Loss of Profits award. The total monetary payout to the company is now approximately AED 9.92 million, equivalent to ₹25.54 crore. The company also secured a permanent prohibitory injunction against its counterparty, RSMM General Trading LLC.
What just happened
Honasa Consumer filed an application to correct computational and clerical errors in an arbitral award. The Arbitral Tribunal allowed this, revising the 'loss of profits' award upwards to AED 7.32 million by correcting a reference error. Substitution costs were also adjusted to AED 744,758. The tribunal issued a permanent injunction preventing RSMM General Trading LLC from pursuing actions that breach their agreement's dispute resolution clauses. Additionally, RSMM is now liable for damages equivalent to any financial recoveries made against Honasa in related Dubai court proceedings.
Why this matters
This development significantly enhances Honasa Consumer's financial recovery prospects by increasing the awarded amount. The permanent injunction provides crucial legal protection, preventing the counterparty from initiating further litigation in foreign jurisdictions that bypasses their agreement. The indemnity clause acts as a financial shield against potential losses from ongoing Dubai court cases.
The backstory
This arbitration stems from a dispute between Honasa Consumer Limited and RSMM General Trading LLC. The initial arbitral award was dated May 14, 2026. Honasa Consumer sought a revision to correct errors related to financial year references in the 'loss of profits' calculation.
What changes now
The company's potential recovery has increased, and it has gained stronger legal protection against the counterparty's actions in foreign courts. Investors will monitor the timely realization of the award amount.
Risks to watch
Post-award interest at EIBOR + 2% (AED component) or SBI Prime Lending Rate + 2% (INR component) will only apply if the total award of approximately AED 9.92 million remains unpaid after 30 days, indicating a potential for delayed cash inflow. The existence of the indemnity clause suggests that related Dubai court proceedings are ongoing.
Context metrics (time-bound)
The revised Loss of Profits award stands at AED 7.32 million, an increase from the original AED 4.34 million. Revised Substitution Costs are AED 744,758. The total monetary payout is approximately AED 9,918,514 (₹25.54 crore). Arbitration costs incurred by the company amount to ₹0.77 crore.
What to track next
Investors should track the payment status of the AED 9.92 million award and observe if the 30-day deadline is met. Monitoring any developments in the related Dubai court proceedings will also be important.