OYO strikes NCLAT to problem insolvency plea in opposition to subsidiary

Hospitality chain OYO has approached the National Company Law Appellate Tribunal (NCLAT) in opposition to an order of the Ahmedabad Bench of National Company Law Tribunal (NCLT) admitting an insolvency petition in opposition to OYO Hotels and Homes Private Limited (OHHPL), a subsidiary of the dad or mum group.
The Ahmedabad Bench of NCLT had on April 1 admitted an insolvency plea in opposition to OHHPL after a creditor approached the tribunal claiming a default of Rs 16 lakh. The NCLT admitted the plea and appointed an interim decision skilled to handle the day-to-day proceedings of the corporate. It had then additionally requested all collectors to submit their claims with proof on or earlier than April 15.
The initiation of insolvency in opposition to the subsidiary led to incorrect studies claiming that your complete OYO group had filed for insolvency. On Wednesday, Ritesh Agarwal, the group chief govt officer of the hospitality chain denied the studies and stated {that a} claimant had sought Rs 16 lakh from its subsidiary, which led to the case at NCLT.

“OYO has paid that under protest and amount already banked by the claimant,” Agarwal tweeted. In an announcement later, the corporate stated it was stunned the NCLT had admitting a petition in opposition to OHHPL for a contractual dispute, it additionally stated that it will “refrain from commenting further on the merits of the matter” for the reason that matter was sub-judice.