Zostel Withdraws Application in OYO Dispute

Zostel has recently chosen to withdraw its latest application in the ongoing legal feud with PRISM, which is the parent company of OYO. This application was addressed by the Delhi High Court on Monday, August 10. The court granted Zostel the option to retract the plea and allowed for a future approach.

The court also decided not to engage in Zostel’s complaint submitted to the Securities and Exchange Board of India (SEBI). During a brief hearing last week, an issue concerning Zostel’s legal representation was raised. Previous counsel indicated to the court that legal fees had not been settled, whereas Zostel had appointed new legal representatives for this latest matter. Subsequently, the court postponed the hearing to August 10. Upon revisiting the case, Zostel opted to withdraw the application.

Background of the Dispute

This recent action follows Zostel’s earlier withdrawal of a different application on July 8. The origins of this dispute trace back to OYO’s proposed acquisition of Zostel in 2015. Zostel asserts that it is entitled to almost 7% of OYO’s stake, with the share rights still unresolved.

Legal Proceedings and Appeals

In May 2025, the Delhi High Court annulled the arbitral award that formed the basis of Zostel’s claims, concluding that no final agreement existed between the two parties. Currently, Zostel’s Section 37 appeal regarding this judgment is still pending before the Delhi High Court.

Recent Actions Taken by Zostel

In a related matter, Zostel has approached SEBI concerning OYO’s draft IPO disclosures, claiming that the documentation failed to provide crucial information pertinent to their ongoing dispute. Zostel has requested a thorough review of these disclosures as OYO moves forward with its IPO plans.

A representative from PRISM remarked that the latest order came merely one month after Zostel withdrew the previous application. The spokesperson maintains that Zostel’s filings are frivolous and lack standing.