OSIM International announced that the firm has been served a writ of summons on Monday.
The other parties who have been served the writ of summons include Paris Investment, local luxury brand TWG Tea and its co-founder, Mr Taha Bouqdib. It is issued by The Wellness Group and its founder Mr Manoj Mohan Murjani, who is also TWG Tea's co-founder.
The claim in the writ of summons is related to the recent subscription of the shares in TWG Tea by Osim and Paris Investment, and other disputes. Mr Murjani and The Wellness Group claimed that the issue of shares was an act of minority oppression and is in breach of the terms of the shareholders agreement.
The agreement on March 18 2011 was between Osim, Paris Investment, The Wellness Group, and TWG Tea.
They have asked for TWG Tea shares issued to Osim and Paris Investment to be set aside, for The Wellness Group to regain its shareholding percentage in TWG Tea.
They have also asked for damages to be assessed.
Osim said in a statement that it "believes that the allegations are unmeritorious and groundless and it intends to vigorously defend the claims made". It is currently seeking legal advice to refute the claims and to file a counterclaim against Mr Murjani and The Wellness Group. Osim will keep shareholders informed of any progress and will make further announcements, when appropriate.