- The time period sheet executed between the 2 events in 2015, promised ZO Rooms’ shareholders 7% of Oyo.
By Tarush Bhalla, Hindustan Occasions, Bengaluru
PUBLISHED ON MAR 07, 2021 11:37 PM IST
The Arbitral Tribunal has dominated in favour of Zostel Hospitality Pvt. Ltd., which owns Zostel Hostels and ZO Rooms, in a authorized battle in opposition to Oravel Stays Pvt. Ltd, the mother or father of Oyo Rooms, which can result in shareholders of ZO Rooms to now personal 7% in Oyo.
The time period sheet executed between the 2 events in 2015, promised ZO Rooms’ shareholders 7% of Oyo. The Arbitral Tribunal, in a ruling by former Chief Justice of India AM Ahmadi on March 6, ordered the doc to be binding.
“Nevertheless, as Definitive Agreements have but to be executed, the Tribunal holds that the Claimant is entitled to take acceptable proceedings for Particular Efficiency and execution of the Definitive Agreements as envisaged for itself and its shareholders beneath the time period sheet,” stated the order.
In line with Zostel Hospitality, ZO Rooms and Oyo had entered into talks for a merger in 2015, executing an settlement on November 26 that yr. ZO Rooms accomplished its obligation beneath the settlement and transferred the enterprise however Oyo did not switch 7% to the ZO Room’s shareholder, which finally led to the just lately concluded arbitration, the corporate stated.
Now, Zostel will take the judgment to Oyo to fulfil the obligations beneath the time period sheet and switch the shares.
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