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National Company Law Appellate Tribunal (NCLAT), Chennai, on Thursday (February 27, 2025) set aside the insolvency proceedings against Coffee Day Enterprises Limited, which runs Cafe Coffee Day chain.
NCLAT, which earlier reserved its order, pronounced the ruling on Thursday (February 27, 2025) and the detailed order copy is awaited.
In a stock exchange announcement, the company said the NCLAT allowed its appeal and set said the National Company Law Tribunal (NCLT) last year’s order initiating the insolvency proceedings.
V.G. Siddhartha’s and Café Coffee Day’s rise through the years
Last week, Coffee Day Enterprises had said the corporate insolvency resolution process against it has been resumed with effect from February 22, 2025 as the NCLAT didn’t give its ruling by February 21 as per the instruction of the Supreme Court.
The Bengaluru Bench of the NCLT had ordered insolvency proceedings against the company on August 8, 2024 following a petition filed by its financial creditor IDBI Trusteeship Services Limited over an alleged non-payment of dues of ₹228 crore.
Malavika Hegde, a shareholder and director in the company, appealed against the order before NCLAT and got a stay order on August 14, 2024. Later, IDBI Trusteeship approached the Supreme Court, which directed the NCLAT to dispose of the pending appeal by February 21.
As the appeal was not disposed of until 21 February, the NCLAT’s stay order was vacated and the insolvency process against the company resumed again, as per the apex court’s directive.
Published – February 27, 2025 05:17 pm IST
