Siliguri-based hotelier moves SC against Oyo for unfair practices

A Siliguri-based hotelier has challenged a National Company Law Appellate Tribunal (NCLAT) ruling that closed insolvency proceedings against OYO and one of its units, in the Supreme Court.

The hearing is scheduled for September 13 before a two-judge Bench.

Oyo did not immediately respond to a request for comment.

“We tied up with OYO in July 2017 and until February 2019, it did fair business practices with us and we had no complaints with them.

"From March 2019, itself it started charging unnecessary penalties and charges and taking a huge chunk from our profits every month.

"We kept complaining to its authorities but it kept telling us that it will return the money, but to no avail,” said Mona Aggarwalla, director at Siliguri’s Central Courtyard Resort said.

Aggarwalla has made a claim of Rs 37 lakh, including legal fee and taxes.

In July, the NCLAT closed an insolvency proceeding against OYO and one of its subsidiaries Oyo Hotels & Homes (OHHPL), and also disallowed the intervention of external parties, including the Federation of Hotel & Restaurant Associations of India (FHRAI).

Industry body FHRAI said in May that it had been allowed by the NCLAT to intervene on behalf of hotels in the OYO unit insolvency case before the tribunal.

The association had filed the application on behalf of its member hotels in India, which said operational creditors were suffering hugely on account of non-payments of debt by OYO.

In April this year, the NCLT Ahmedabad had started insolvency proceedings against Oyo’s subsidiary Oyo Hotels and Homes after Gurugram-based hotelier Rakesh K Yadav filed the case. He claimed that OHHPL defaulted on a payment of Rs 16 lakh.

In June, Yadav, withdrew the case after resolving the issue with the hospitality start-up.

Photograph: Anushree Fadnavis/Reuters