OYO, the global travel-tech firm, secured a legal victory as the Delhi High Court ruled in its favour by setting aside the arbitral award related to its long-standing dispute with Zostel Hospitality, the parent company of ZO Rooms. The court also dismissed Zostel’s execution petition, bringing closure to the years-long legal tussle.

The court upheld OYO’s stance that it did not breach any agreement arising from the acquisition discussions held with Zostel in 2015. The judgment emphasised that no part of Zostel’s business was ever transferred to OYO and reinforced the legal principle that a determinable contract cannot be specifically enforced, aligning with precedents from the Supreme Court of India.

The dispute dates back to November 2015, when OYO and Zostel signed a non-binding term sheet to explore a possible acquisition. However, the transaction fell through due to failed due diligence and lack of mutual agreement on key commercial terms.

Zostel had initiated arbitration in September 2018, which resulted in a March 2021 arbitral award, a decision OYO promptly challenged. The legal battle continued with OYO securing an earlier win when the court dismissed Zostel’s injunction application in February 2022.

The Delhi HC's latest ruling affirms that no definitive agreement was ever finalised and that essential terms remained unsettled.

OYO, responding to the outcome, reiterated its commitment to technological innovation and operational excellence, continuing its mission to deliver quality accommodation experiences for customers worldwide.