Zostel has withdrawn its latest application before the Delhi High Court in its long-running dispute with PRISM, the parent company of OYO. The application was taken up by the Delhi High Court on Monday, August 10. The court allowed Zostel to withdraw the plea with liberty to approach it again. It also declined to intervene in Zostel’s complaint before the Securities and Exchange Board of India (SEBI). The matter was briefly heard last week, when an issue concerning Zostel’s legal representation came up. Its previous counsel informed the court that legal fees remained unpaid, while Zostel had engaged new counsel for the latest application. The court then adjourned the matter to August 10. When the case came up again, Zostel withdrew the application. The latest development comes a month after Zostelwithdrew an earlier applicationbefore the Delhi High Court on July 8. The dispute dates back to OYO’s proposed acquisition of Zostel in 2015. Zostel claims it is entitled to nearly 7% stake in OYO, with the share entitlement remaining unresolved. In May 2025, the Delhi High Court 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 the judgment remains pending before the Delhi High Court. Separately, Zostel recently approached SEBI over OYO’s draft IPO disclosures, alleging that the filing omitted material details related to the dispute. Zostel sought a review of the disclosures as OYO prepares for its IPO process. A PRISM spokesperson said the latest order came barely a month after Zostel withdrew its previous application. The spokesperson maintained that Zostel’s applications were frivolous and not maintainable. Bareback Media has recently raised funding from a group of investors. Some of the investors may directly or indirectly be involved in a competing business or might be associated with other companies we might write about. This shall, however, not influence our reporting or coverage in any manner whatsoever. You may find a list of our investorshere.
