Hospitality firm OYO said on Thursday that the National Company Law Appellate Tribunal (NCLAT) had ordered a stay on the formation of a committee of creditors against its subsidiary OYO Hotels and Homes Pvt Ltd in proceedings under the Code of Insolvency and Bankruptcy. Ltd (OHHPL).
Earlier, the National Company Law Tribunal (NCLT) had filed a petition to initiate insolvency proceedings against OHHPL for recovery of ₹ 16 lakh, an order that the hospitality firm challenged before the Appellate Tribunal on Wednesday.
“Closing the thread of @Riteshgar since yesterday – today NCLAT has accepted our petition and ordered stay of formation of COC in IBC proceedings against OHHPL, an OYO subsidiary. Oyo said in a tweet, the claimant had already paid ₹ 16 lakh, which we opposed.
In a tweet, OYO founder and group CEO Ritesh Aggarwal said, “I am very grateful to everyone for their support on social media since yesterday (Wednesday). Thank you for discouraging misleading news and forwarded messages ”.
Agarwal on Wednesday rubbished reports that the company had filed for bankruptcy.
“There is a PDF and text message that claims OYO has filed for bankruptcy. This is absolutely untrue and false. A claimant is seeking 16 lakh rupees (USD 22,000) from the subsidiary of OCL, leading to the petition of NCLT, ”he tweeted.
According to the Insolvency and Bankruptcy Law, any creditor can take a company to bankruptcy on unpaid dues. Once a petition is filed by the NCLT, a resolution professional or RP is appointed who investigates the creditors’ claims and supervises the sale of the company to help settle such claims.
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