Archive · 28 Sep 2025
Fabindia Sued by Biome Co-Founders Over Exit Clause
Imagine you and a friend started a personal care company, Biome, and then teamed up with Fabindia.
You had an agreement that if things didn't go well, you could sell your part of Biome to Fabindia for a set amount.
Now, you want to sell, but Fabindia isn't paying what they agreed.
You believe Fabindia is not honoring the deal.
You are taking Fabindia to court to get the money you were promised and to ensure Fabindia doesn't sell off Biome's assets before the dispute is resolved.
Biome co-founders are suing Fabindia over an alleged breach of a shareholder agreement.
The lawsuit concerns a 'put option' allowing the founders to sell their shares.
The founders value their shares at ₹196.16 crore based on Biome's FY24 financials.
Fabindia claims the founders 'neglected their responsibilities' and acted with 'wilful misconduct'.
Both sides have nominated arbitrators, and the case is pending in court.
- Who
- Biome co-founders Shantanu Jain and Sania Arora Jain are suing Fabindia.
- What
- The founders are suing Fabindia for failing to honor an exit clause in their shareholder agreement.
- When
- The lawsuit was filed in the Delhi High Court.
- Where
- The dispute is taking place in Delhi High Court.
- Why
- The founders allege Fabindia breached the agreement by not honoring a 'put option' allowing them to sell their shares.
Biome Co-founders' Perspective
Fabindia's Perspective
Breach of Agreement
Biome Co-founders' Perspective
Fabindia breached the shareholder agreement by not honoring the put option.
Fabindia's Perspective
The founders 'neglected their responsibilities' and are at fault.
Founder Performance
Biome Co-founders' Perspective
The founders took active managerial roles and introduced new strategies but lacked adequate support from Fabindia.
Fabindia's Perspective
The founders had 'wilful misconduct and negligence.'
- Companies Involved
- Fabindia, Biome Life Sciences India Pvt. Ltd
- Plaintiffs
- Shantanu Jain and Sania Arora Jain, Biome co-founders
- Claimed Amount
- ₹196.16 crore
- Reason for Lawsuit
- Breach of Shareholder Agreement (SHA) to honor a 'put option'
- Biome's Revenue (FY24)
- ₹16.93 crore
- Biome's Profit After Tax (FY24)
- ₹4.12 crore
- Stakeholders
- Jains (49.99%), Fabindia (controlling stake)