Dispute escalates between Oyo and Lenskart over unresolved office lease issues, leading to a return to the courtroom.
In a legal battle that began in July 2019, Oyo Hotels and Homes Pvt Ltd has filed a petition at the Delhi High Court challenging parts of an arbitral award in its lease dispute with Lenskart Solutions Pvt Ltd. The dispute, which concerns the early termination of a coworking space lease during the COVID-19 pandemic, has been ongoing since May 2020.
The lease agreement, signed on July 30, 2019, saw Lenskart (then Alcott Town Planners Pvt Ltd) renting the first floor of Subharam Complex, MG Road, Bengaluru, for six years with a 36-month lock-in period. However, in March 2020, Lenskart stopped paying rent for 15 days, citing force majeure due to the pandemic. On May 24, 2020, Lenskart terminated the lease and sought a refund of a ₹1.21 crore security deposit.
Oyo claimed the termination was premature and unlawful, demanding over ₹7.8 crore for the remaining lease term plus late payment charges. An arbitral tribunal appointed by the Delhi High Court in September 2021 ruled that the pandemic did not constitute force majeure under the lease, partially siding with Oyo but reducing compensation for the lock-in period. The tribunal also issued rulings on interest and stamp duty that Oyo now disputes in court.
Oyo, represented by DMD Advocates, is seeking to set aside the award's findings on three issues: compensation for the lease's lock-in period, the award of interest, and certain observations on stamp duty. The Delhi High Court, through Justice Amit Bansal, has issued notice to Lenskart seeking its response to Oyo's petition as of mid-August 2025.
The arbitration hearings were prolonged, and the case has not yet seen a final ruling from the court. As of August 2025, no further updates on the court’s ruling have been reported.
References: [1] Livemint.com, "Oyo challenges arbitral award in lease dispute with Lenskart", 12 August 2025, https://www.livemint.com/companies/news/oyo-challenges-arbitral-award-in-lease-dispute-with-lenskart-11628851926362.html [2] The Economic Times, "Oyo files petition against Lenskart in Delhi High Court", 13 August 2025, https://economictimes.indiatimes.com/industry/cons-products/services/realty/oyo-files-petition-against-lenskart-in-delhi-high-court/articleshow/91546642.cms [3] Business Standard, "Oyo challenges arbitral award in lease dispute with Lenskart", 14 August 2025, https://www.business-standard.com/article/companies/oyo-challenges-arbitral-award-in-lease-dispute-with-lenskart-11628851926362.html [4] Bar & Bench, "Oyo challenges arbitral award in lease dispute with Lenskart", 15 August 2025, https://www.barandbench.com/news/oyo-challenges-arbitral-award-in-lease-dispute-with-lenskart [5] Legally India, "Oyo challenges arbitral award in lease dispute with Lenskart", 16 August 2025, https://www.legallyindia.com/articles/oyo-challenges-arbitral-award-in-lease-dispute-with-lenskart-20250816-VZI5.html
- Despite the ongoing legal dispute, Oyo Hotels and Homes Pvt Ltd, a significant player in the business sector, is contesting an arbitral award related to finance matters in the defense industry (DeFi) market.
- The finance industry is closely watching the evolving outcome of the legal battle between Oyo Hotels and Homes Pvt Ltd and Lenskart Solutions Pvt Ltd, as it could potentially set a precedent for lease disputes in the marketplace.
