NCLT initiates insolvency proceedings against OYO subsidiary; company files appeal

New Delhi: The National Company Law Tribunal has directed to start insolvency proceedings against OYO Hotels and Homes Pvt Ltd on 30 March, according to a public announcement by the interim resolution professional.Ahmedabad-based Keyur Jagdishbhai Shah has been appointed as the interim resolution professional to run the insolvency proceedings.Meanwhile, OYO said it has challenged the order against its subsidiary OYO Hotels and Homes Pvt Ltd (OHHPL) in the National Company Law Appellate Tribunal (NCLAT).The creditors of OYO Hotels and Homes Pvt Ltd are called upon to submit their claims with proofs on or before 15 April, 2021, to the interim resolution professional, the announcement said."We are surprised to hear that the Hon'ble 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," an OYO spokesperson said.The matter is sub-judice and "we would refrain from commenting further on the merits of the matter at this stage. We have strong faith and belief in our judicial system," the spokesperson added.OYO Founder and Group CEO Ritesh Agarwal in a tweet said, "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 Lakhs (USD 22k) from OYO's subsidiary leading to a petition at NCLT". In another tweet, he said, "OYO has paid that under protest and amount already banked by the claimant. OYO has also appealed with the NCLAT about the matter. OYO is recovering from the pandemic steadily and our largest markets are operating profitably".