Supreme Court Dismisses Zostel’s Plea Against Delhi High Court Order in Oyo Dispute

The Supreme Court has quashed Zostel Hospitality’s challenge against a Delhi High Court ruling to set aside a 2021 arbitral award in its dispute with Oyo.

The Court held that Zostel should have preferred an appeal under Section 37 of the Arbitration Act, not a Special Leave Petition.

The dispute arose from a 2015 term sheet where Zostel’s shareholders were to get a 7% equity stake in Oyo in return for transferring business and personnel.

Zostel claimed it fulfilled its obligations, but Oyo did not sign definitive agreements, citing resistance from a minority investor. Hence, leading to the arbitration.

[Zostel v Oravel Stays Pvt. Ltd.]