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NCLT initiates insolvency proceedings against OYO arm; Co files appeal

Meanwhile, OYO mentioned it has challenged the order against its subsidiary OYO Hotels and Homes Pvt Ltd (OHHPL) within the National Company Law Appellate Tribunal (NCLAT).

PTI | , New Delhi

PUBLISHED ON APR 07, 2021 02:41 PM IST



The National Company Law Tribunal has directed to begin insolvency proceedings against OYO Hotels and Homes Pvt Ltd on March 30, in keeping with a public announcement by the interim decision skilled.

Ahmedabad-based Keyur Jagdishbhai Shah has been appointed because the interim decision skilled to run the insolvency proceedings.

Meanwhile, OYO mentioned it has challenged the order against its subsidiary OYO Hotels and Homes Pvt Ltd (OHHPL) within the National Company Law Appellate Tribunal (NCLAT).

The collectors of OYO Hotels and Homes Pvt Ltd are referred to as upon to submit their claims with proofs on or earlier than April 15, 2021, to the interim decision skilled, the announcement mentioned.

“We are surprised to hear that the Hon’ble NCLT has admitted a petition against OHHPL, a subsidiary of OYO for 16 Lakh in a contractual dispute, which dispute is not even with this subsidiary. We have filed an appeal,” an OYO spokesperson mentioned.

The matter is sub-judice and “we would refrain from commenting further on the merits of the matter at this stage. We have strong faith and belief in our judicial system,” the spokesperson added.

OYO Founder and Group CEO Ritesh Agarwal in a tweet mentioned, “There is a PDF and text message circulating that claims OYO has filed for bankruptcy. This is absolutely untrue and inaccurate. A claimant is seeking 16 Lakhs (USD 22k) from OYO’s subsidiary leading to a petition at NCLT”.

In one other tweet, he mentioned, “OYO has paid that under protest and amount already banked by the claimant. OYO has also appealed with the NCLAT about the matter. OYO is recovering from the pandemic steadily and our largest markets are operating profitably”.

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