The National Company Law Appellate Tribunal (NCLAT) concluded bankruptcy proceedings against Oyo and one of its subsidiaries on Wednesday, and also barred external parties from intervening, including the Federation of Hotel & Restaurant Associations of India (FHRAI). The NCLAT granted the industry association FHRAI permission to intervene on behalf of hotels in the Oyo unit bankruptcy case before the tribunal in May. The organisation filed the case on behalf of its member hotels in India, who it said at the time were operating creditors suffering greatly as a result of Oyo's debt non-payments. The NCLAT dismissed Oyo's subsidiary Oyo Hotels and Homes Private Limited (OHHPL) insolvency proceedings on Wednesday and granted Oyo's request to set aside the Insolvency and Bankruptcy Code case against OHHPL.
Oyo stated in a statement that it will continue to work closely with its hotel partners to resolve any outstanding claims. We applaud NCLAT's ruling and the fact that the case has now been resolved. We had previously reached an agreement with the original claimant, but additional interveners with vested interests who were not parties to the case had delayed its conclusion... Covid-19 has had a substantial influence on the travel industry, and we feel that industry groups' efforts should be focused on helping to revive the sector amid this grim time. Despite today's decision, we welcome constructive talks with them and all other groups to work towards the revival of travel in India,” said Rohit Kapoor, CEO of Oyo in India and Southeast Asia. Rakesh K Yadav, a hotelier headquartered in Gurugram, dropped an insolvency petition filed with the National Company Law Tribunal (NCLT) against an Oyo entity after settling the dispute with the hospitality start-up in June. “Throughout the issue, OYO has been transparent and dedicated to working collaboratively with all relevant parties, including Mr. R K Yadav,” stated OYO counsel Khaitan & Co. It was a clear case in which the two parties concerned had settled the problem and there was no space for interference, which the Hon'ble Tribunal has now also upheld.” After Yadav filed the complaint, the NCLT Ahmedabad initiated bankruptcy proceedings against Oyo's subsidiary Oyo Hotels and Homes Pvt Ltd (OHHPL) in April of this year. He alleged that OHHPL failed to make a Rs 16 lakh payment. Yadav's attorney, Srinivas Kotni of Lexport, had stated, "The IBC issue against Oyo's subsidiary OHHPL in NCLT Ahmedabad is entirely settled and withdrawal application is completed." In addition, my client confirms receipt of Rs 16 lakhs.”
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