Delhi High Court Passes Interim Order Which Restrains Hoteliers’ Associations From Boycotting Or Banning OYO

The Delhi High Court, in an interim order, has restrained various hoteliers’ welfare associations from issuing any notices or boycotting or banning hospitality company OYO in any manner.

The act of hotelier associations appeared pushed other hoteliers and service providers to act in breach of contract between them and Oravel Stays Private Limited, which operates under the name of OYO, the interim order stated.

The hoteliers’ associations’ act of calling for a boycott of the company prima facie would be illegal, the court noted.

The defendants, that is, the hoteliers’ associations will also also not press any such notice that may have been already issued, the interim order stated.

Earlier, OYO approached the court seeking an ex-parte injunction to restrain the hoteliers’ associations and its members from issuing any “threats” through its notice.

The company had also sought to restrain the defendants from boycotting or banning it in any manner by means of “lobbying or colluding with one another” during pendency of the case.

A perusal of the notice allegedly issued by the hoteliers’ association seemed to show that it had given a call to all its member hotels to support a nationwide protest against OYO by boycotting and blocking OYO rooms from June 20, the court stated.

The court has issued notice to the hoteliers’ associations and listed the matter for further hearing on August 5.