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Hotelier Rakesh Yadav withdraws insolvency plea against Oyo unit

Business Standard  

Gurugram-based hotelier Rakesh K Yadav, who had filed a plea with the National Company Law Tribunal (NCLT) against a unit of hospitality firm Oyo, has withdrawn the case after resolving his issues with the company. He also acknowledged the receipt of INR 16 lakh under the MSA (master service agreement) with the Oyo arm. On April 1, 2021, IBC proceedings started for Oyo's subsidiary OHHPL due to a case led by Yadav at NCLT Ahmedabad. Oyo had argued that the petition should have been filed against its unit My Preferred Transformation and Hospitality Pvt Ltd (MTH). Yadav claimed that OHHPL defaulted on a payment of INR 16 lakh. Oravel Stays Pvt Ltd, the parent company of Oyo Rooms, had challenged the NCLT order, which initiated insolvency proceedings against OHHPL. MTH and Yadav subsequently considered a mutual resolution, and reached a settlement. Yadav has also filed for the withdrawal of the IBC case against OYO subsidiary OHHPL.