On 29th September 2021, Delhi High Court has adjourned the case of Zostel (Zo Rooms) and OYO to a later date.
The legal battle between OYO and Zostel has been going on for the last three years since the agreements of merger broke down.
The case has been filed as a result of OYO challenging the arbitration award as well as the petition filed by Zostel for executing the award.
APPLICATION BY ZOSTEL
Zostel is a chain of backpacker hostels that has appealed in the Court seeking interim relief in order to prevent any kind of change in shareholding, including via an IPO (Initial Public Offering)
OYO has filed the plea against the arbitration award which was decided during arbitration between OYO and Zostel. In the response, Zostel is against the challenge filed by OYO to the arbitration award.
On 28th September 2021, OYO in a blog held that Zostel is misrepresenting facts
Furthermore, the Co-founder of Zostel held that they are also opposing any attempt made by OYO for changing the shareholding structure along with their contention against the arbitration award.
The Delhi High Court has fixed the next date for the hearing of the case as October 7,2021.