The National Company Law Appellate Tribunal (NCLAT), Principal Bench has upheld the order rejecting applications filed by Operational Creditor seeking restrain on OYO's IPO and further directions to it to furnish its financial statements.
The Bench comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) stated the appeal as 'premature' since CIRP hasn't yet initiated against OYO.
The Operational Creditor has filed an application under Section 9 of the Insolvency and Bankruptcy Act, 2016 for initiation of CIRP proceeding against the Corprate-Debtor OYO. While the petition is pending adjudication, the OC filed the petition seeking restrain on OYO's IPO which is under process.
The application came to be dismissed as the Adjudicating Authority opined that the Corporate Debtor was not yet admitted in CIRP and therefore the applications seeking prohibition on IPO were premature.
In the present appeal preferred before NCLAT, the above order was upheld.
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