NCLAT Stays Formation of Committee of Creditors in Insolvency Proceedings against OYO Arm

The National Company Law Appellate Tribunal (NCLAT) has ordered a stay on the formation of Committee of Creditors (CoC) in the insolvency proceedings against OYO Hotels and Homes Pvt Ltd (OHHPL), a subsidiary of hospitality unicorn OYO.

This comes in response to OYO challenging the recent National Company Law Tribunal (NCLT) order for commencement of insolvency proceedings against OHHPL over a dispute of ₹16 lakh.

“The NCLAT provided a stay for the formation of CoC in IBC proceedings against OHHPL, subsidiary of OYO. OHHPL appealed the order in front of NCLAT and explained that a demand draft of ₹16 lakh was issued to the claimant under protest and the claimant has willingly banked the DD,” said a statement by a OYO spokesperson.

It may be recalled that NCLT had, on March 30, admitted the insolvency plea, filed by creditor Rakesh Yadav contending that OHHPL defaulted for an amount of ₹16 lakh. OYO had challenged this NCLT order before NCLAT on April 7.