Oyo moves Delhi HC against parts of arbitral award in Lenskart lease row
The hospitality firm has moved the Delhi High Court seeking to overturn findings on lock-in period compensation, interest, and stamp duty in a coworking space lease row triggered by the pandemic.
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Oyo Hotels and Homes Pvt Ltd has approached the Delhi High Court challenging portions of an arbitral award in its long-running lease dispute with Lenskart Solutions Pvt Ltd over the termination of a coworking space arrangement during the COVID-19 pandemic, Bar and Bench.
The matter was heard on Tuesday by Justice Amit Bansal, who issued notice to Lenskart and sought its response to Oyo's plea.
While Oyo had partially prevailed before the arbitral tribunal, it is contesting findings on compensation for the lease's lock-in period, the award of interest, and certain observations related to stamp duty.
The dispute traces back to a July 30, 2019, lease agreement under which Lenskart - then operating as Alcott Town Planners Pvt Ltd - rented the first floor of Subharam Complex, MG Road, Bengaluru, from Oyo for six years with a 36-month lock-in period, the report added.
Lenskart took possession of the premises but, in March 2020, invoked the lease's force majeure clause citing the pandemic and stopped paying rent for 15 days.
On May 24, 2020, Lenskart terminated the lease, seeking a refund of Rs 1.21 crore paid as security deposit.
Oyo termed the termination premature and unlawful, claiming more than Rs 7.8 crore in rent for the remaining term along with late payment charges.
The matter went to arbitration after the Delhi High Court appointed a sole arbitrator in September 2021. The tribunal's mandate was extended multiple times, with the final award delivered after proceedings reached the final arguments stage and examined voluminous records.
The report further added that in its award, the arbitrator found that the pandemic did not trigger the lease's force majeure clause, which applied only if the premises were damaged or destroyed - supporting Oyo's stance.
