NCLAT favours OYO Hotels

The National Company Law Appellate Tribunal (NCLAT) has allowed withdrawal of insolvency against OYO Hotels and Homes Private Limited (OHHPL), which is a subsidiary of OYO.

The order effectively concludes the insolvency proceedings against the company. The tribunal's order disallowed the intervention of external parties, including FHRAI. In a statement, OYO said that it will continue to work closely with its hotel partners for the closure of any pending claims.

Rohit Kapoor, CEO for OYO's India and Southeast Asia operations, said, "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."

He further said that the company remains committed to building the "most trusted brand" for its partners and resolving all issues. "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.