TTT NEWS NETWORK
NEW DELHI | 11 AUGUST 2026
Zostel suffered another setback in its long-running dispute with PRISM (the parent of OYO) on Monday, as the Delhi High Court dismissed its latest application as withdrawn, noting that it lacked merit.
The dismissal comes after the matter was briefly taken up last week, when an issue concerning Zostel’s legal representation arose before the Court. Zostel’s previous counsel informed the Court that its fees remained unpaid, while Zostel had engaged new counsel for the recently filed application. The matter was consequently adjourned to August 10. When it came up again today, the Delhi High Court found no merits and Zostel withdrew its application.
The latest plea followed Zostel’s withdrawal of an earlier application on July 8.
The dismissal adds to a series of unsuccessful proceedings initiated by Zostel in this dispute. In May 2025, the Delhi High Court had set aside the arbitral award underlying Zostel’s claims, holding that there was no concluded deal between the parties. Zostel’s Section 37 appeal against that judgment remains pending before the Delhi High Court. Even Zostel’s latest filing acknowledges that the arbitral award was set aside and that the dispute is presently at the appellate stage.
PRISM spokesperson said, “The Delhi High Court has today dismissed as withdrawn yet another application filed by Zostel. This comes barely a month after Zostel withdrew its previous application before the same Court. Despite its previous counsel informing the Court that legal fees remained unpaid, Zostel has continued to file fresh applications seeking overlapping protections. We have consistently maintained that these applications are frivolous and not maintainable. The arbitral award on which Zostel’s claims were founded was set aside in its entirety by the Delhi High Court in May 2025. We remain confident in our legal position and will continue to place complete reliance on the judicial process.”
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