NCLAT Halts Insolvency Proceedings Against Coffee Day Enterprises

The National Company Law Appellate Tribunal on Wednesday stayed the insolvency proceedings against Coffee Day Enterprises Ltd., which operates Cafe Coffee Day chain, till next date of hearing.

Passing an interim order, the Chennai-based bench of the appellate tribunal stayed the operations of the NCLT order.

NCLAT also directed the financial creditor of CDEL, IDBI Trusteeship Services Ltd., claiming a default of Rs 228.45 crore, to file a counter affidavit over the submissions of the company.

"In these eventualities, the respondents are directed to file counter affidavits within a period of three weeks. Till the next date of listing, the effect of the operation of the impugned order, admitting the appellant (CDEL) to Section 7 procedures will be kept in abeyance," said a bench comprising Justice Sharad Kumar Sharma and Jatindranath Swain.

NCLAT order came over a petition filed by Malavika Hegde, Executive Director-CEO of the suspended board of the company.

Earlier on Aug. 8, the Bengaluru bench of the NCLT on Aug. 8, admitted the plea filed by IDBI Trusteeship Services Ltd., claiming a default of Rs 228.45 crore and appointed an interim resolution professional to take care of the operation of the debt-ridden company.

CDEL is the parent company of Coffee Day Group which operates the Cafe Coffee Day chain of coffee houses. It also owns and operates a resort, renders consultancy services and is engaged in the sale and purchase of coffee beans.