New Delhi, Jul 7 (IANS): The National Company Law Appellate Tribunal (NCLAT) has allowed withdrawal of insolvency proceedings by SoftBank-backed hospitality major against its subsidiary OYO Hotels and Homes Private Limited (OHHPL).

The order effectively concludes the insolvency proceedings against the company.

The tribunal's order disallowed the intervention of external parties, including FHRAI.

In a statement, OYO said that it will continue to work closely with its hotel partners for the closure of any pending claims.

Rohit Kapoor, CEO for OYO's India & Southeast Asia operations, said, "We welcome the decision of NCLAT and that the matter has finally been laid to rest. We had already settled with the original claimant but subsequent interveners with vested interests who were not a party to the case had delayed its closure."

He further said that the company remains committed to building the "most trusted brand" for its partners and resolving all issues.

"Covid-19 has impacted the travel industry significantly and we believe the efforts of industry organizations should be to help resurrect the industry during this grim time. Despite today's judgment, we welcome collaborative conversations with them and all other associations to work towards the resurgence of travel in India," Kapoor said.

Counsels of OYO, Khaitan & Co said: "It was a straightforward case where the two parties involved had settled the matter and there was no room for any interventions which has now been upheld by the tribunal also."

OYO had already made a settlement worth Rs 16 lakh with Rakesh Yadav, a Gurugram-based hotelier who had moved NCLT Ahmedabad against the company.