Background and Context

This disclosure is a continuation of the earlier disclosure dated May 15, 2026, regarding a favorable Arbitral Award passed by Sole Arbitrator Hon'ble Justice (Retd.) Hrishikesh Roy in the arbitration between Honasa Consumer Limited and RSMM General Trading LLC.

Recent Development

The Company filed an application on June 12, 2026, under Section 33 of the Arbitration and Conciliation Act, 1996, to rectify computational and clerical errors in the initial Award. The Arbitral Tribunal allowed the application in favor of the Company vide an order dated June 26, 2026 ("Section 33 Order"), received on June 26, 2026 at 12:42 pm (IST).

Key Corrections Effected

  • Loss of Profits: Upward revision from AED 4.34 million to AED 7.32 million due to computational error (Arbitral Tribunal had inadvertently referred to figures for FY 2020-21 instead of FY 2021-22)
  • Substitution Costs: Correction from AED 1,060,584 to AED 744,758 to align with Company's Statement of Claim
  • Protection against Dubai Proceedings: Addition of dispositive direction stating that RSM must pay damages aggregating to any amount sought to be recovered from the Company pursuant to any Dubai court decisions related to the ADA termination

Final Amended Award Summary

Monetary Payout: RSM is directed to pay the Company a total of AED 9,918,514 (approximately INR 25,53,55,217.67), comprising:

  • AED 7,320,000 for loss of profits
  • AED 744,758 for substitution costs
  • AED 1,559,848 towards costs incurred for proceedings in Dubai and allied proceedings in India
  • INR 76,50,875 towards costs of arbitration proceedings

Interest Penalty: If amounts remain unpaid after 30 days, post-award interest shall be payable at:

  • EIBOR + 2% per annum on AED components
  • SBI Prime Lending Rate (PLR) + 2% per annum on INR component

Legal Directives:

  • Permanent prohibitory injunction restraining RSM from initiating/continuing proceedings in Dubai courts in breach of dispute resolution clauses
  • Declaration that Dubai proceedings initiated by RSM are in breach of arbitration agreement and exclusive jurisdiction clause

Additional Information

The disclosure will be hosted on the Company's website at www.honasa.in. The annexure confirms that settlement details are not applicable as the proceedings have not been settled.