Zostel-OYO Failed Merger: Delhi HC Sets Aside Arbitration Tribunal’s Ruling

The Delhi High Court has delivered a significant judgment overturning an arbitration tribunal's previous ruling that had granted Zostel Hospitality Private Limited a 7% stake in Oravel Stays Limited (OYO). The High Court, upon review, concluded that the arbitration tribunal had exceeded the scope of its mandated authority when it awarded shares to Zostel as a remedy for a failed merger attempt between the two entities. This judgment provides crucial clarity regarding the limitations and permissible boundaries of arbitration tribunals, particularly in the context of complex merger and acquisition disputes within the corporate legal framework.