The NLCAT closed insolvency proceedings against Oyo and one of its subsidiaries and disallowed the intervention of external parties in July.
A Siliguri-based hotelier has challenged a National Company Law Appellate Tribunal (NCLAT) ruling that closed insolvency proceedings against OYO and one of its units, in the Supreme Court. The hearing is scheduled for September 13 before a two-judge bench.
Mona Aggarwalla, the director at Siliguri’s Central Courtyard Resort said that they tied up with Oyo in July 2017 and until February 2019, it did fair business practices with them and they had no complaints. From March 2019, it started charging unnecessary penalties and charges and taking a huge chunk from its room revenues every month. She further said that they kept complaining to its authorities but it kept telling them that it will return the money but to no avail.
She has made a claim of Rs 37 lakh, including legal fees and taxes.
Industry body FHRAI said in May that it had 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, which said operational creditors were suffering hugely on account of non-payment of debt by OYO.
In April this year, the NCLT Ahmedabad had started insolvency proceedings against Oyo’s subsidiary Oyo Hotels and Homes after Gurugram-based hotelier Rakesh K Yadav filed the case. He claimed that OHHPL defaulted on a payment of Rs 16 lakh.
In June, Yadav, withdrew the case after resolving the issue with the hospitality start-up.
