[ By Bobby Anthony ]Conclave Infratech has filed an insolvency application against Oravel Stays Pvt Ltd which owns Oyo Rooms for alleged breach of contract.Conclave Infratech owned The Conclave hotel in Hyderabad, which was being managed by Oyo Rooms, has moved the National Company Law Tribunal’s Ahmedabad chapter.As per terms of the agreement signed between Conclave and Oyo, the...
Conclave Infratech has filed an insolvency application against Oravel Stays Pvt Ltd which owns Oyo Rooms for alleged breach of contract.
Conclave Infratech owned The Conclave hotel in Hyderabad, which was being managed by Oyo Rooms, has moved the National Company Law Tribunal’s Ahmedabad chapter.
As per terms of the agreement signed between Conclave and Oyo, the corporate debtor, Oravel, was supposed to pay the corporate creditor, Conclave, an assured benchmark revenue, which is a minimum business guarantee of Rs 12,96,000 every month since May 2018, irrespective of bookings, Conclave Infratech has stated in its application.
Conclave stated that there has been no repayment of the unpaid operational debt by the corporate debtor to the applicant, even as Oyo claimed that talks to resolve the dispute are on.
Conclave’s application stated that it has received the minimum guarantee payment from Oyo only for two months between May 2018 and May 2019. For all other months, the amount paid was way below the minimum guaranteed revenue, Conclave stated.
Incidentally, Conclave’s cumulative claim from Oyo happens to be around Rs 82.50 lakh, according to its insolvency petition.
The corporate debtor Oyo has already been served a demand notice regarding the same.