You are here: Home » Companies » News
Business Standard

NCLAT orders stay on CoC formation in proceedings against subsidiary: Oyo

OYO said the NCLAT has ordered a stay on the formation of committee of creditors in proceedings under the Insolvency and Bankruptcy Code against its subsidiary Oyo Hotels and Homes Pvt Ltd

NCLAT | Oyo | Insolvency and Bankruptcy Code

Press Trust of India  |  New Delhi 

Oyo, Oyo rooms
Oyo signboard

Hospitality firm on Thursday said the National Company Law Appellate Tribunal (NCLAT) has ordered a stay on the formation of committee of creditors in proceedings under the against its subsidiary Hotels and Homes Pvt Ltd (OHHPL).

Earlier, the National Company Law Tribunal (NCLT) had admitted a petition for initiating insolvency proceedings against OHHPL for recovery of Rs 16 lakh, an order that the hospitality firm challenged before the appellate tribunal on Wednesday.

"Closing@riteshagar's thread from yesterday - Today has admitted our plea and ordered a stay for the formation of COC in IBC proceedings against OHHPL, an subsidiary. The claimant has already drawn the INR 16 Lakhs which we paid under protest," OYO said in a tweet.

In a tweet, OYO founder and group CEO Ritesh Agarwal said, "I am so grateful to everyone for their support on social media since yesterday (Wednesday). Thank you for discouraging misleading and forwarded msgs".

Agarwal on Wednesday had rubbished the reports thatthe company had filed for bankruptcy.

"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 Rs 16 lakh (USD 22,000) from OYO's subsidiary leading to a petition at NCLT," he had tweeted.

As per the insolvency and bankruptcy law, any creditor can take a company for insolvency over unpaid dues. Once a petition is admitted by the NCLT, a resolution professional or RP is appointed who examines the claims of creditors and supervises the sale of the company to help settle such claims.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, April 08 2021. 15:57 IST