The OYO-ZO Rooms’ battle is now getting fiercer and the ball is steadily moving towards OYO’s court. Reportedly, a Gurugram-based district court has rejected an arbitration petition filed by budget hotel aggregator ZO Rooms against OYO on the grounds that it lacked jurisdiction.
As OYO stated in an email response to Inc42, “We are delighted with the outcome which reinforces the faith entrepreneurs have in the judiciary. Zostel is taking an emotional route now after the dismissal of their petition. These are factual misrepresentations and theatrical antics by Zostel in a futile attempt at gaining emotional mileage on the case.”
While ZO Rooms has accepted the court’s order, it did not go with OYO’s statement on the matter. As stated by a company spokesperson, “ZO Rooms had filed a petition seeking injunctive relief before the Gurugram court which was declined on the grounds of lack of jurisdiction.”
The spokesperson further added that the court did not pass any order on the merits of the case. On the other hand, OYO had filed a suit for defamation before the Delhi high court and sought certain injunctions against ZO Rooms and its founders.
“The high court declined to pass any injunction against ZO Rooms on February 22 and posted the matter for further hearing.”
OYO Vs ZO Room Battle: A Quick Recap
Two years back, OYO signed a term-sheet to acquire the assets of ZO Rooms. However, after a long-delay, OYO called off the deal. Recently, OYO filed a criminal case against ZO Rooms stating alleging continuous inconvenience and harassment by Zostel founders.
ZO Rooms’s parent company Zostel Hospitality Pvt. Ltd, in response, filed a petition on February 2, 2018, alleging that OYO had acquired its data of employees, assets, hotel properties under the pretext of accelerating the process of acquisition and is now refusing to pay the dues for the business acquired.
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