- Zostel application against PRISM withdrawn.
- Court found no merit in filing.
- Earlier court overturned arbitration decision in May.
The case also briefly involved a change in Zostel’s legal team the previous week. Its former lawyer told the court that legal fees were unpaid, while a new lawyer had been appointed for the latest application. The court then postponed the matter to Aug. 10.
Zostel filed the application after withdrawing an earlier one before the same court on July 8. When the latest matter came up on Aug. 10, Zostel withdrew it after the court found no merit.
PRISM is led by founder and group chief executive officer Ritesh Agarwal, who also chairs G6 Hospitality, parent of Motel 6 and Studio 6.
"The Delhi High Court has today dismissed as withdrawn yet another application filed by Zostel,” a PRISM spokesperson said. “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.”
The dispute dates back to a proposed 2015 deal between Zostel and OYO. Under the deal, Zostel and some shareholders were to receive a 7 percent stake in OYO. The deal fell through, leading to an arbitration case and court proceedings.
PRISM said Zostel’s recent legal applications had no merit and noted that the Delhi High Court overturned the earlier arbitration decision in May 2025.
“We remain confident in our legal position and will continue to place complete reliance on the judicial process," the spokesperson said.
Zostel’s Section 37 appeal against that decision remains pending before the Delhi High Court. The latest filing also noted that the earlier ruling was set aside and that the case remains under appeal.
Separately, PRISM started investor roadshows for its proposed $701 million IPO, giving management an opportunity to present its business and growth plans to investors.
