- NCLAT order marks the closure of insolvency proceedings
- FHRAI disallowed to intervene
- IRP had previously verified disputed claims and only INR 13 lakh worth of claims were admitted
The National Company Law Appellate Tribunal (NCLAT) today passed an order concluding the ongoing insolvency case against OYO’s subsidiary OYO Hotels and Homes Private Limited (OHHPL). The tribunal has allowed OYO’s plea for setting aside the IBC case against its subsidiary OHHPL in effect closing the insolvency proceedings against the company. The tribunal’s order disallowed the intervention of external parties, including FHRAI. OYO will continue to work closely with its hotel partners for the closure of any pending claims.
Commenting on the development, Rohit Kapoor, CEO – India & Southeast Asia, said, “We welcome the decision of NCLAT and that the matter has finally been laid to rest. We had already settled with the original claimant but subsequent interveners with vested interests who were not a party to the case had delayed its closure. We remain committed to building the most trusted brand for our partners and resolving all issues, as we’ve been proactively doing in the past. COVID-19 has impacted the travel industry significantly and we believe the efforts of industry organizations should be to help resurrect the industry during this grim time. Despite today’s judgment, we welcome collaborative conversations with them and all other associations to work towards the resurgence of travel in India.”
Counsels of OYO, Khaitan & Co said, “Throughout the matter, OYO has been forthcoming and committed to working together with all relevant stakeholders including Mr. R K Yadav. It was a straightforward case where the two parties involved had settled the matter and there was no room for any interventions which has now been upheld by the Hon’ble Tribunal also.”
Commenting on the settlement, Counsel of Mr. R K Yadav, Mr. Srinivas Kotni of Lexport had earlier said, “The IBC case regarding OYO’s subsidiary OHHPL in NCLT Ahmedabad is fully resolved and withdrawal application is executed. Further, my client acknowledges the receipt of INR 16 Lakhs. OYO is a global company emerging from India and by engaging directly with them my client has understood more about them. Mr. R K Yadav and his friends in the hotel owner community wish OYO wholehearted success and an email to this effect has been sent to the IRP.”