FHRAI joins hands in Siliguri hotel owner’s case against OYO in Supreme Court

This will enable the federation to represent many other aggrieved budget hotel owners with their cases

The Federation of Hotel & Restaurant Associations of India (FHRAI) has been allowed to join the party in the appeal of the Siliguri Hotelier, Mona Agrawalla’s in the apex court against OYO, the budget hotel aggregator. This will help the federation to represent the cause of many aggrieved budget hotel owners in the case.

According to a press statement issued by the federation, based on the civil appeal filed by FHRAI under Section 62 of the IBC, challenging the final order dated July 07, 2021 passed by the NCLAT, the Supreme Court has allowed its plea to be tagged along with the appeal of Mona Agrawalla of Dabriwal Enterprises of Siliguri against OYO. The case will come up for hearing next on December 15, 2021.

This development comes after the NCLAT vide its July 7 order had allowed the withdrawal of application filed by an operational creditor, Rakesh Yadav on his reaching a settlement with OYO. The federation in its plea to the SC had stated the withdrawal application was accepted by the NCLAT without taking into account the 110 other operational creditors with dues of over INR 225 crore.

“The latest development has offered several hoteliers especially, those operating in the budget and mid-market segment a ray of hope of recovering the dues owed by OYO. Aggrieved by the NCLAT’s impugned order, several members approached FHRAI to file a civil appeal against the order and to also be impleaded in the appeal matter of Agrawalla. Many hoteliers including our members are facing hardships due to COVID19 and have scarce resources to file individual and costly litigations in the SC on their own. These hoteliers just can’t leave their businesses to go to Delhi especially, during pandemics and hence FHRAI filed a civil appeal challenging the judgment passed by the NCLAT. The SC has allowed our association to be tagged along with the Siliguri-based hotelier’s appeal. This is a big breakthrough,” says Gurbaxish Singh Kohli, vice-president, FHRAI.

The FHRAI was also an intervenor in the NCLAT and represented around 50 members with claims of approx. INR 100 crores..