The National Company Law Appellate Tribunal (NCLAT), Chennai, on Thursday set aside the insolvency proceedings against Coffee Day Enterprises Ltd (CDEL), the parent company of Cafe Coffee Day. With this, the NCLAT dismissed a bankruptcy plea filed by IDBI Trusteeship over an alleged Rs 228 crore default.
In a regulatory filing, the company said, “…today the Hon’ble National Company Law Appellate Tribunal, Chennai, pronounced the order allowing the appeal filed by the Company and set aside the proceedings of Corporate Insolvency Resolution Process initiated against the Company as per the National Company Law Tribunal, Bangalore dated 08th August 2024.”
A copy of the order is awaited, it added.
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The NCLAT was hearing the appeal filed by a director of CDEL’s suspended board. The petition was filed by Malavika Hegde, a shareholder and director at CDEL, who had challenged the National Company Law Tribunal’s (NCLT) 8 August 2024 order, which had admitted IDBI Trusteeship’s insolvency plea against the company. The plea had cited a default of Rs 228.45 crore, leading to the appointment of an interim resolution professional to manage the operations of the company.
Earlier last week, Coffee Day Enterprises had said that the corporate insolvency resolution process against it has been resumed with effect from February 22, 2025.
Shares of Coffee Day Enterprises were down 4.98 per cent at 6:00 pm at a trading price of Rs 21.38.
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