What you need to know about the case?
- Anam Datstec, the applicant operates a hotel chain 'The Golden Hotel' in Goa.
- Golden Hotel assert that Oyo has signed an agreement guaranting minimum business deal in 2018. However, Softbank supported startup failed to honor a monthly fee of ₹ 14 lakh.
- Sameer Rohatgi, an advocate appearing for Golden hotels stated that Oyo has similar felony cases filed through property proprietors towards it, seeking numerous crores in damages.
- The entire length of these alleged damages owed by means of Oyo to many assets owners contesting parallel cases would possibly amount to a higher fee than the real price of houses the startup presently owns, according to Rohatgi.
Latest development in the case:
- The Delhi high court has ordered Oyo to list details of all unencumbered property - hotels and homes freed from debt and different liabilities.
- The high court bench handed the order on 7 July in the above case through Anam Datsec Pvt Ltd seeking eight crore in damages from Oyo for non-payment of dues.
- The high court directed Oyo to publish information such as a listing of hotels, shareholding status, and valuations of properties in a ‘sealed envelope’ in order that the records doesn’t get publicly recorded at some stage in the court cases.
- The Delhi HC order in opposition to Oyo comes after the startup had invoked force majeure in March, after the lockdown was announced through the authorities.
- By invoking the clause, Oyo sought to drop minimum payment guarantees agreements with motel companions, and terminated contracts with numerous companions from March onwards.
Do you think coronavirus Pandemic is a Force Majure event where parties can be relieved of their liabilities to fulfill the contractual obligations?