On April 1, the Ahmedabad bench of NCLT issued an order to start the insolvency resolution process in response to an application filed by an operational creditor for non-payment of dues totalling Rs. 16 lakh. Rakesh Yadav was the one that filed the petition.
On Wednesday, Oyo announced that it had filed a complaint with the National Company Law Appellate Tribunal, challenging the order of the National Company Law Tribunal’s Ahmedabad bench to initiate a company insolvency process against its subsidiary, Oyo Hotels and houses (OHHPL), over a Rs 16 lakh dispute.
On April 1, the Ahmedabad bench of NCLT issued an order to start the insolvency resolution process in response to an application filed by an operational creditor for non-payment of dues totalling Rs 16 lakh. Rakesh Yadav was the one who filed the petition. In an April 3 order, the interim resolution professional Keyur Jagdishbhai Shah said, “The creditors of Oyo Hotels and houses are hereby called upon to send their claims to the interim resolution professional before April 15.” Ritesh Agarwal, the company’s founder and CEO, took to Twitter to elucidate that a PDF and text messages saying Oyo had filed for bankruptcy were “completely untrue and inaccurate.”
A complainant is suing Oyo’s subsidiary for Rs 16 lakh, according to Agarwal, resulting in an unreasonable petition to the NCLT. The disputed sum of Rs 16 lakh has already been paid to the complainant under protest by the party (other than OHHPL) with whom the dispute was raised, consistent with Oyo in a very statement. per the firm, this is not the primary time the NCLT has approved a petition for a new-age company.
We will refrain from writing further on the merits of the case because it’s still under investigation.