Oyo founder and CEO Ritesh Agarwal on Wednesday denied reports that the hospitality start-up had filed for bankruptcy. The report followed a petition filed in NCLT for T 16 lakh in a contract dispute against a subsidiary of OYO.
Reacting to a series of tweets and a document circulating on social media, Mr. Aggarwal said in a tweet, “A PDF and text message is circulating that claims OYO has filed for bankruptcy. This is absolutely untrue and false. A claimant is seeking INR 16Lakhs (USD 22k) from NCLT’s petition for a subsidiary of OCL. “
He said that OYO has paid the amount which has already been banked by the claimant “under protest”. OYO against its subsidiary (OHHPL). The order of NCLT for the amount of 16 lakhs is challenged.
“OYO is steadily recovering from the epidemic and our largest markets are running profitably,” Agarwal said.
According to a statement posted on Twitter by Mr. Aggarwal, this is not the first time that a petition has been accepted by the NCLT for a new age company. “There was a similar case in Flipkart in February 2020 where an NCLT petition was allowed by the court for a small operational creditor, but it was immediately set aside by the NCLAT,” it said.
An OYO spokesperson said, ‘We are surprised to hear that the Honorable NCLT has filed a petition of ₹ 16 lakh against OHPL, a subsidiary of OYO, which is also not in dispute with this subsidiary. We have filed an appeal. The case is sub-judicial and we will refrain from commenting further on the merits of the case at this stage. We have strong faith and belief in our judicial system. “
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