News
Delhi High Court Sets Aside Arbitral Award Entitling Zostel to 7% Stake in OYO
13 May 2025
- DMD Advocates
- Matter Reporting
The Delhi High Court set aside an arbitral award that had held that Oravel Stays (parent company of OYO) breached a binding agreement with Zostel Hospitality (owner of ZO Rooms) to transfer up to 7 percent of OYO’s shares to ZO Rooms’ shareholders. The tribunal had ruled Zostel was entitled to take appropriate proceedings for Specific Performance and execution of the Definitive Agreements. Zostel later sought to restrain OYO from altering its shareholding, including through its proposed IPO, under Section 9 of the Arbitration and Conciliation Act, 1996, but the Court dismissed the plea. The High Court subsequently set aside the award, inter alia, holding that granting specific performance without agreement on essential terms conflicted with the public policy of India. DMD represented OYO.
OYO was represented by Anuradha Dutt, Lynn Pereira, Suman Yadav, Haaris Fazili, Kunal Dutt, Raghav Dutt, Avinash Singh, and Prachi Pandey.
