NCLT admits insolvency plea against Oyo subsidiary

Following the development, Oyo has moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT order. An Oyo spokesperson said: “We are surprised to hear that the NCLT has admitted a petition against OHHPL a subsidiary of Oyo for Rs 16 lakh in a contractual dispute, which dispute is not even with this subsidiary.”

“We have filed an appeal. The matter is sub-judice and we would refrain from commenting further on the merits of the matter at this stage,” the spokesperson said.

The company also said, the Rs 16 lakh in dispute has already been paid to the claimant. The NCLT ordered the commencement of a corporate insolvency resolution process of the OYO subsidiary on March 30, 2021, with effect from April 1, 2021.

Ritesh Agarwal, Founder and CEO of Oyo tweeted: “There is a PDF and text message circulating that claims Oyo has filed for bankruptcy. This is absolutely untrue and inaccurate.”