Delhi High Court Set Aside the Arbitral Award Granting 7% Stake to Zostel in OYO

The Delhi High Court has set aside a 2021 arbitral award that entitled Zostel to a 7% stake in OYO, ruling in favour of OYO's challenge under Section 34 of the Arbitration and Conciliation Act, 1996.

The dispute arose from a 2015 deal where OYO planned to acquire Zostel’s business in exchange for equity, but no definitive agreements were signed.

The court held Zostel's rights had not crystallised into enforceable shareholding.

Earlier, a plea to restrain OYO’s IPO was dismissed, stating no binding bar existed. The matter will next be heard on May 23.