Delhi HC: Arbitrator Appointed for Rs. 1.8 Crore Dispute Between OYO and Patial

Quick Summary: The Delhi High Court has chosen someone to help settle a disagreement between OYO Hotels and Homes Private Limited and Shri Deepankur Patial. The disagreement is about a Management Service Agreement dated November 15, 2024.

Background of the Case

OYO Hotels and Homes Private Limited asked the court on February 20, 2026, to appoint someone to help settle the disagreement. This was based on a rule that says if people can't settle their argument through talks in 60 days, they should go to arbitration.

Objections from Shri Deepankur Patial

Shri Deepankur Patial had two main complaints:

1. Authorization Issue: The paperwork was signed by Ms. Ankita Priya, who was allegedly not properly allowed to do so. However, the court found she was allowed based on a decision made by the company's board on November 23, 2023.

2. Negotiation Clause: Deepankur Patial argued that they had to try negotiating before going to arbitration. The court, however, said that this step was recommended but not required.

Court's Decision

Justice Harish Vaidyanathan Shankar, who was in charge of the case, looked at previous similar cases to make the decision. The court focused on helping the arbitration process move forward without getting into the details of the case.

"The court’s role is to help and follow the agreed way of solving disputes when the initial talks have failed."

Appointment of Arbitrator

The court picked Mr. Essenese Obhan as the only arbitrator. The arbitration will happen under the Delhi International Arbitration Centre (DIAC) and will follow its rules.

Financial Dispute

The amount of money being argued over is about Rs. 1.8 crores. The arbitrator will work on sorting out the money issues between the parties.

Next Steps

The chosen arbitrator must provide the necessary information as required by the rules within a week. The court's order will be sent to the arbitrator using all available methods, including email.

Verdict Summary

The court decided to appoint Mr. Essenese Obhan to handle the dispute between OYO and Deepankur Patial, ensuring that the disagreement is resolved according to the agreed rules, without the court getting involved in the actual details of the dispute.