Fabindia arm founders sue company over exit clause

Fabindia’s personal care line of FabEssentials face washes, moisturizers, shampoos, and fragrances.

- 

Fabindia claims Biome founders had "neglected their responsibilities" and were guilty of "wilful misconduct and negligence".

(MINT)

The Jains sought urgent interim relief under Section 9 of the Arbitration and Conciliation Act, requesting the court to direct Fabindia to deposit the sum in an escrow account, even as they pursue arbitration to secure their claim.

Shantanu has over two decades of experience in women’s personal care products and Sania isa biochemist trained at London’s Imperial College, the petition said. They launched Biome Life Sciences LLP in 2019 to develop Ayurveda-based, science-backed personal care products. Their work caught the attention of William Nanda Bissell, Fabindia’s managing director and former chairman. Bissell engaged the Jains first as consultants and later proposed a formal collaboration.

Biome Life Sciences India Pvt. Ltd was incorporated in May 2020, with Fabindia holding a controlling stake. According to the petition, the SHA between Fabindia and the founders included a put option, which allows the founders to sell their shares to Fabindia ata valuation based on revenue or Ebitda.