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“FHRAI has been receiving several complaints from member hotels with respect to the non-payment of debts by OYO for years., it has presently filed the application before the NCLAT on behalf of aggrieved hotels & restaurants across India who have filed their claims with the Insolvency Resolution Professional (IRP)
Hotels claims OYO entered into various kinds of agreements ranging from leave and license agreements to a management services agreement with minimum return assurances. However, the entity eventually breached the terms of the agreements.
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Hotels associated with FHRAI are claiming non-payment of dues worth INR 72 Cr, where as total claims registered with IRP against OYO are to the tune of INR 200 Cr, FHRAI says.
National Company Law Appellate Tribunal (NCLAT) has allowed the Federation of Hotel and Restaurant Associations of India (FHRAI) to intervene in the OYO subsidiary’s insolvency case, on behalf of its member hotels that are yet to be paid about INR 72 Cr by OYO. FHRAI will have to make its oral submissions on June 2, 2021, in front of the bankruptcy court.