NCLAT allows withdrawal of OYO's insolvency proceedings: Report

The National Company Law Appellate Tribunal (NCLAT) has allowed hospitality firm OYO's application for withdrawal following an insolvency petition against the company. "Their (OYO) application for withdrawal has been allowed and our intervention applications have been disallowed," said lawyers of one of the hoteliers requesting anonymity, Moneycontrol said.

However, creditors can approach the corporate debtor (OYO) to enter into a settlement, the report said.

Case so far

On April 1, the Ahmedabad-bench of the National Company Law Tribunal (NCLT) has admitted an insolvency application against OYO subsidiary, OYO Hotels & Homes Private Ltd (OHHPL) from Rakesh Yadav of Yellow White Residency Hotel who demanded clearance of dues of Rs 16 lakh. Following this, OYO moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT order.

On April 7, other creditors had also come forward in the court stating that the OYO subsidiary owed them substantial amounts of money as well. The creditors had filed claims amounting to Rs 250 crore, reported Inc42.

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," the spokesperson said.

The company also said, the Rs 16 lakh in dispute has already been paid to the claimant.

The insolvency proceedings are expected to close by September 27, 2021.

(With inputs from IANS)

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