OYO-ZO Rooms' Battle - Court Rejects ZO Rooms' Petition On Grounds Of Jurisdiction

Published on 26 Feb 2018 by Tushar

OYO vs Zo rooms Gurugram

The OYO-ZO Rooms’ battle is now getting fiercer and the ball is steadily moving towards OYO’s court. Reportedly, a Gurugram-based court has rejected an arbitration petition filed by budget hotel aggregator ZO Rooms against OYO on the grounds that it lacked jurisdiction.

While ZO Rooms has accepted the court’s order, it did not go with OYO’s statement on the matter. As stated by a company spokesperson, “ZO Rooms had filed a petition seeking injunctive relief before the Gurugram court which was declined on the grounds of lack of jurisdiction.”

The spokesperson further added that the court did not pass any order on the merits of the case. On the other hand, OYO had filed a suit for defamation before the Delhi high court and sought certain injunctions against ZO Rooms and its founders.

While the Indian government is raising its flags in the seminars worldwide as a startup nation, the Indian entrepreneurs are facing some cruel realities. The OYO-ZO Rooms legal tangle is not the first one. The Stayzilla saga was the much worse, where the founder Yogendra vasupal had to spent months in the jail. In several cases, the startup founders step back without even fighting to avoid getting their hands dirty in the blame game ruled by power and resources.

Going ahead, how the ruling of the court in the OYO and ZO Rooms’ case will impact the Indian startup ecosystem, is a wait and watch situation.

Source- INC42


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