NCLAT closed insolvency proceedings against Oyo and one of its subsidiaries, and also disallowed the intervention of external parties including FHRAI. The industry body said in May it has been allowed by the NCLAT to intervene on behalf of hotels in the Oyo unit insolvency case before the tribunal. The association had filed the application on behalf of its member hotels in India, who it said at the time are operational creditors suffering hugely on account of non-payments of debt by Oyo.
NCLAT closed proceedings for insolvency of Oyo’s subsidiary Oyo Hotels and Homes Private Limited (OHHPL), and allowed Oyo’s plea for setting aside the Insolvency and Bankruptcy Code case against OHHPL. Oyo will continue to work closely with its hotel partners for the closure of any pending claim, the company said in a statement.
“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…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,” said Rohit Kapoor, CEO – India and Southeast Asia, Oyo.
