Coffee Day Wins The Insolvency Battle; Gets Relief From NCLAT
National Company Law Appellate Tribunal sets aside the insolvency proceedings against Coffee Day Enterprises
(The Corner Office Journal) – India’s National Company Law Appellate Tribunal (NCLAT) set aside insolvency proceedings against Coffee Day Enterprises Ltd.
The Chennai bench of the NCLAT passed the order today (27 February), allowing the appeal of Coffee Day Enterprises, and set aside the National Company Law Tribunal’s (NCLT) August 2024 insolvency order against the company, the owner of Cafe Coffee Day chain said in a stock exchange announcement.
The order copy is awaited, it added.
The development comes after the resumption of insolvency proceedings against the company recently.
Last week, Coffee Day Enterprises said the corporate insolvency resolution process against the company was resumed with effect from 22 February as the NCLAT didn’t give its ruling by 21 February as directed by the Supreme Court.
The Bengaluru bench of the NCLT admitted Coffee Day Enterprises for insolvency resolution on 8 August 2024 following a petition filed by its financial creditor IDBI Trusteeship Services Ltd.
The company, however, later appealed against the order before the NCLAT and got a stay order on 14 August 2024.
Therefore, IDBI Trusteeship approached the Supreme Court, which directed the NCLAT to dispose of the pending appeal by 21 February. As the appeal was not disposed of until 21 February, the NCLAT’s stay order was vacated and insolvency process against the company resumed again.
The NCLAT, which earlier reserved its order, pronounced the ruling today.
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