NCLAT allows hotels’ body to intervene in insolvency of OYO unit – The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/nclat-allows-hotels-body-to-intervene-in-insolvency-of-oyo-unit/articleshow/82720247.cmsSynopsis

FHRAI said it had filed an application on behalf of its member hotels in India, who were operational creditors and were “suffering hugely” on account of non-payments by Oyo.

The Federation of Hotel & Restaurant Associations of India (FHRAI) said on Monday that at the latest hearing on the Oyo Insolvency case before the National Company Law Appellate Tribunal (NCLAT), the federation was allowed to intervene on behalf of its member hotels.

FHRAI said it had filed an application on behalf of its member hotels in India, who were operational creditors and were “suffering hugely” on account of non-payments by Oyo.

Oyo denied these developments.

“This is consistent with the baseless and negative propaganda perpetuated by FHRAI to mislead the small hoteliers of this country,” an Oyo spokesperson said, and added: “They are on purpose misrepresenting the views and directions of the honourable courts of India. Given the matter is sub judice, we have no further comments at this point.”

Oyo’s counsel, Jeevan Bhalla Panda, said the application seeking to intervene in the appeal was yet to be heard and had no merit.

“The honourable NCLAT also did not allow any written submissions to be filed by any intervener except only to make an oral submission to show why they should be allowed to intervene at all. FHRAI has no locus standi whatsoever,” he added.

FHRAI said senior counsel Kishnendu Datta appeared for it, intervening on behalf of its affected members for their dues of around ₹72 crore. The federation said the tribunal had also allowed FHRAI to make its oral submissions on June 2, and that the claims registered with Oyo’s insolvency resolution professional totalled ₹200 crores.

According to the federation, the hotels stated that Oyo had entered into various kinds of deals ranging from leave and licence agreements to management services pacts with minimum return assurances with them, but eventually breached the terms.

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