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NCLAT stays insolvency proceedings against OYO

Orders a stay on formation of committee of creditors (COC) in IBC proceedings

Oyo-Rooms-Logo File photo of Oyo's logo

In a big relief to Softbank-backed Oyo, the National Company Law Appellate Tribunal (NCLAT) has admitted the plea of its subsidiary Oyo Hotels and Homes Pvt Ltd (OHHPL) and ordered a stay on formation of committee of creditors (COC) in IBC proceedings. "The claimant has already drawn the Rs 16 lakh which we paid under protest," OYO clarified in a statement. 

The tribunal, in its March 30 order, had asked all the creditors of Oyo's subsidiary to submit its claims by April 15, to initiate the corporate insolvency proceeding. It had admitted a plea for corporate insolvency proceeding against OHHPL, which operates under the brand name  Weddingz.in.

"I am so grateful to everyone for their support on social media since yesterday. Thank you for discouraging misleading news and forwarded messages," OYO founder Ritesh Agarwal tweeted following the court's stay order. 

On Wednesday, reports suggested that OYO had filed for bankruptcy. Soon, OYO had issued a clarification terming the reports as “inaccurate” and “untrue.”

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