The Ahmedabad-bench of the National Company Law Tribunal (NCLT) has admitted an insolvency application against OYO subsidiary, OYO Hotels & Homes Private Ltd (OHHPL). Following this, OYO has moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT order.
An OYO spokesperson said: "We are surprised to hear that the NCLT has admitted a petition against OHHPL a subsidiary of OYO for Rs 16 lakh 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 our judicial system," the spokesperson said.
The company also said, the Rs 16 lakh in dispute has already been paid to the claimant.
The NCLT ordered the commencement of a corporate insolvency resolution process of the OYO subsidiary on March 30, 2021, with effect from April 1, 2021.
The tribunal has directed OYO Hotels and Homes to submit its claims with proof on or before April 15 to the interim resolution professional.
OYO also denied claims that the company has filed for bankruptcy. Ritesh Agarwal, Founder and CEO of OYO said in a tweet: "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 INR 16Lakhs (USD 22k) from OYO's subsidiary leading to a petition at NCLT."
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 INR 16Lakhs (USD 22k) from OYO's subsidiary leading to a petition at NCLT. 1/3— Ritesh Agarwal (@riteshagar) April 7, 2021
"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," he said in another tweet.
The insolvency proceedings are expected to close by September 27, 2021.