India, May 19 -- The Delhi High Court has reportedly said that the arbitral award passed in 2021 against hospitality major OYO on its dispute with rival Zostel Hospitality violated public policy as it was based on a term sheet that was not binding.

As per a report by Bar and Bench, the court made the observation while setting aside the arbitral award that had entitled Zostel to up to a 7% stake in OYO's parent Oravel Stays Private Limited.

The court ruled that the agreement for the acquisition of Zostel's budget hotel offering, Zo Rooms, signed between both the parties in 2015 was expressly non-binding and could not be enforced.

It added the award failed to adjudicate core issues, including whether any concluded contract existed, and v...