NCLAT admits OYO’s plea against the commencement of insolvency

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The National Company Law Appellate Tribunal has admitted hospitality major OYO’s plea against the admission of an insolvency plea against its subsidiary by the Ahmedabad-bench of NCLT.

OYO had moved the appellate tribunal on Wednesday after NCLT on March 30 ordered the commencement of the insolvency proceeding against OYO Hotels & Homes Private Ltd (OHHPL). The NCLT ordered the commencement of a corporate insolvency resolution process of the OYO subsidiary with effect from April 1, 2021.

The tribunal had directed OYO Hotels and Homes to submit its claims with proof on or before April 15 to the interim resolution professional.

“The NCLAT provided a stay for the formation of COC in IBC proceedings against OHHPL, subsidiary of OYO. OHHPL appealed the order in front of NCLAT and explained that a demand draft of Rs 16 lakh was issued to the claimant under protest and the claimant has willingly banked the DD,” said an OYO statement.

Taking to Twitter, Ritesh Agarwal, Founder and CEO of OYO said: “I am so grateful to everyone for their support on social media since yesterday. Thank you for discouraging misleading news and forwarded msgs.”

The CEOs response comes on the backdrop of reports on Wednesday suggesting the OYO has filed for bankruptcy.

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