Tribunal ) issued an award in a dispute between Zostel Hospitality Private Limited (
Zostel ) and Oravel Stays Private Limited (
Oyo ). The parties to the dispute operate accommodation management and booking business in India.
In its award, the Tribunal held that a term sheet executed between Zostel and Oyo was binding in nature despite the express declaration in the preamble of the term sheet stating that it was non-binding and merely exploratory.
This update highlights the reasoning of the Tribunal and outlines the key takeaways which must be borne in mind by parties intending to execute deal term sheets in India.
The Dispute