NCLAT stays insolvency proceedings against OYO

By LE Desk

New Delhi, April 9: In a relief for OYO, the National Company Law Appellate Tribunal (NCLAT) on Thursday stayed the formation of a committee of creditors (CoC) in insolvency proceedings against the firm’s subsidiary OYO Hotels and Homes (OHHPL).

The Ahmedabad bench of the National Company Law Tribunal (NCLT) had on April 1 admitted insolvency proceedings on an application filed by an operational creditor, Rakesh Yadav, over non-payment of dues amounting to Rs 16 lakh against OHHPL. OYO challenged the order before the appellate tribunal on April 7. The NCLAT has admitted OYO’s plea and passed the stay order on Thursday, the Financial Express reported.

“Today (Thursday) NCLAT has admitted our plea and ordered a stay for the formation of CoC in IBC proceedings against OHHPL, an OYO subsidiary. The claimant has already drawn the Rs 16 lakh which we paid under protest,” Oyo said in a tweet.

OYO explained to the NCLAT that a demand draft of Rs 16 lakh was issued to the claimant under protest and the claimant has willingly ‘banked’ the demand draft.

In a tweet, OYO founder and group CEO Ritesh Agarwal said, “I am so grateful to everyone for their support on social media since yesterday (Wednesday). Thank you for discouraging misleading news and forwarded messages”.

https://www.financialexpress.com/industry/sme/nclat-stays-insolvency-proceedings-against-oyo/2229581/