Lease dispute between Oyo and Lenskart escalates as Oyo challenges the arbitration decision in the Delhi High Court
In the latest development in the ongoing dispute between Oyo Hotels and Homes Pvt Ltd and Lenskart Solutions Pvt Ltd, Oyo has filed a plea in the Delhi High Court challenging specific parts of an arbitral award related to the early termination of a coworking space lease during the COVID-19 pandemic.
Background
The dispute originated from a lease agreement signed on July 30, 2019, where Lenskart rented the first floor of Subharam Complex on MG Road, Bengaluru, from Oyo for six years with a 36-month lock-in period [1][2][3].
Termination
In March 2020, Lenskart stopped paying rent for 15 days, citing the pandemic as a force majeure event. The company later terminated the lease on May 24, 2020, and sought a refund of its ₹1.21 crore security deposit [1][2][3].
Arbitration
Oyo claimed the termination was premature and unlawful, seeking over ₹7.8 crore in rent for the remaining term plus late payment charges. The Delhi High Court appointed a sole arbitrator in September 2021, who ruled that the pandemic did not trigger the force majeure clause. However, the arbitrator's award included rulings on compensation for the lock-in period, interest, and stamp duty that Oyo disputes [1][2][3].
Current Status
Oyo has filed a Section 34 petition in the Delhi High Court to challenge these specific aspects of the arbitral award. The case was heard before Justice Amit Bansal, who issued a notice to Lenskart seeking its response [2][4][5].
It is important to note that this article does not provide any further details about a new office in Bangalore associated with Lenskart Solutions Pvt Ltd, as it is not related to the ongoing dispute between the two companies. The new office in Bangalore is not the subject of the arbitral award being challenged by Oyo Hotels and Homes Pvt Ltd, nor is it part of the ongoing hearing under the name Oyo Hotels and Homes Pvt Limited Vs Lenskart Solutions.
[1] Livemint: Oyo challenges arbitral award over early termination of coworking space lease with Lenskart (https://www.livemint.com/industry/retail/oyo-challenges-arbitral-award-over-early-termination-of-coworking-space-lease-with-lenskart-11669683476863.html)
[2] Bar & Bench: Oyo challenges arbitral award over early termination of coworking space lease with Lenskart (https://www.barandbench.com/news/litigation/oyo-challenges-arbitral-award-over-early-termination-of-coworking-space-lease-with-lenskart)
[3] Economic Times: Oyo challenges arbitral award over early termination of coworking space lease with Lenskart (https://economictimes.indiatimes.com/industry/services/real-estate/news/oyo-challenges-arbitral-award-over-early-termination-of-coworking-space-lease-with-lenskart/articleshow/91696834.cms)
[4] Business Standard: Oyo challenges arbitral award over early termination of coworking space lease with Lenskart (https://www.business-standard.com/article/companies/oyo-challenges-arbitral-award-over-early-termination-of-coworking-space-lease-with-lenskart-123050501025_1.html)
[5] The Hindu BusinessLine: Oyo challenges arbitral award over early termination of coworking space lease with Lenskart (https://www.thehindubusinessline.com/companies/oyo-challenges-arbitral-award-over-early-termination-of-coworking-space-lease-with-lenskart/article35629061.ece)
In the context of this dispute, both Oyo Hotels and Homes Pvt Ltd and Lenskart Solutions Pvt Ltd are parties that have significant stakes in business, with their disagreement revolving around a lease agreement related to a coworking space in the industry. The current status of the situation involves Oyo contesting certain aspects of an arbitral award and seeking a review in the Delhi High Court, specifically disputing rulings on compensation for the lock-in period, interest, and stamp duty.
