NEW DELHI: In a surprising development, the National Company Law Tribunal (NCLT) has ordered the commencement of insolvency proceedings against OYO Hotels and Homes Pvt. Ltd (OHHPL), a unit of hotel aggregator Oyo Rooms, over a dispute regarding payments worth Rs 16 lakh.
The NCLT had admitted the insolvency plea on March 30, filed by Rakesh Yadav, who claims that OHHPL defaulted for an amount of Rs 16 lakh. The tribunal has now ordered the creditors of OHHPL to submit their claims by April 15 to the interim resolution professional (IRP) based in Ahmedabad.
“Notice is given that the National Company Law Tribunal has ordered the commencement of a corporate insolvency resolution process of the OYO Hotels and Homes Pvt. Ltd on 30th March 2021 (w.e.f. 01st April 2021). The creditors of M/S. OYO Hotels and Homes Pvt. Ltd, are hereby called upon to submit their claims with proof on or before 15th April, 2021 to the interim resolution professional,” read the NLCT order.
Oravel Stays Pvt Limited, the parent company of Softbank-backed OYO Rooms, has challenged the NCLT order and said that the disputed amount has already been paid to the claimant. “We are surprised to hear that Hon’ble NCLT has admitted a petition against OHHPL, a subsidiary of OYO, for INR 16 lakhs in a contractual dispute, which dispute is not even with this subsidiary.
We have filed an appeal. 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 the judicial system,” said an OYO spokesperson. OYO founder and CEO Ritesh Agarwal also said that reports that the company had filed for bankruptcy was “absolutely untrue and inaccurate.”