Rumors spread on Wednesday that Oyo Hotels and Homes Pvt. OYO founder Ritesh Agarwal tweeted that business is not just about fines, it is about this order. ₹He said the subsidiary’s Rs 16 lakh payment dispute with a supplier was paid “in protest” despite an appeal against the order with the Appellate Tribunal.
Oyo’s space rental business suffered a serious blow last year, with little to indicate that it had collapsed. Our bankruptcy code, however, allows the operating lender to drag a firm into the NCLT for insolvency resolution on unpaid arrears. This has led many companies to the humiliation of hitting social media circuits, not being able to cough up what they owe, creating waves of panic among employees and other lenders. In this case, it is now up to the Appellate Body to weigh the supplier’s claims against Oyo. There is no cause for alarm on its survival, except for evidence that it did not actually float.