The Delhi High Court rejected Zostel's appeal seeking IPO suspension amid its long-running squabble, which is a major relief for IPO-bound hospitality startup OYO.
Zostel and Oyo have been fighting in court over the former's claim to a 7% stake in Oyo as a result of a botched acquisition between the two companies. Zostel's claims have been rejected by Oyo, a Gurgaon-based startup.
"We are awaiting receipt of the complete judgement in order to go through it and ascertain the reasons for which we have been denied interim relief," said Zostel's legal counsel, Abhishek Malhotra, managing partner at TMT Law Practice. "While it has no bearing on the final award (7% stake in Oyo), the immediate relief that we sought to seek a stay of the IPO has been denied at this stage." We are considering our options, which include filing an appeal before the division bench to give effect to the award's true intent and purpose."
"While we await the full order, we believe Zostel's demand for the issuance of 7% OYO shares under the arbitration award has also been rejected." "This verdict vindicates our position that Zostel has been attempting to mislead the public at large," an Oyo spokesperson said, adding that the company was grateful for the HC's Monday order dismissing Zostel's request to stay Oyo's IPO plans.