Zostel has withdrawn its newest utility earlier than the Delhi Excessive Court docket in its long-running dispute with PRISM, the father or mother firm of OYO.
The applying was taken up by the Delhi Excessive Court docket on Monday, August 10. The courtroom allowed Zostel to withdraw the plea with liberty to strategy it once more. It additionally declined to intervene in Zostel’s grievance earlier than the Securities and Trade Board of India (SEBI).
The matter was briefly heard final week, when a problem regarding Zostel’s authorized illustration got here up. Its earlier counsel knowledgeable the courtroom that authorized charges remained unpaid, whereas Zostel had engaged new counsel for the newest utility. The courtroom then adjourned the matter to August 10. When the case got here up once more, Zostel withdrew the applying.
The most recent improvement comes a month after Zostelwithdrew an earlier application earlier than the Delhi Excessive Court docket on July 8.
The dispute dates again to OYO’s proposed acquisition of Zostel in 2015. Zostel claims it’s entitled to just about 7% stake in OYO, with the share entitlement remaining unresolved.
In Could 2025, the Delhi Excessive Court docket put aside the arbitral award underlying Zostel’s claims, holding that there was no concluded deal between the events. Zostel’s Part 37 enchantment in opposition to the judgment stays pending earlier than the Delhi Excessive Court docket.
Individually, Zostel just lately approached SEBI over OYO’s draft IPO disclosures, alleging that the submitting omitted materials particulars associated to the dispute. Zostel sought a evaluation of the disclosures as OYO prepares for its IPO course of.
A PRISM spokesperson stated the newest order got here barely a month after Zostel withdrew its earlier utility. The spokesperson maintained that Zostel’s functions have been frivolous and never maintainable.
