NCLAT sets aside Coffee Day Enterprises insolvency case

The case began in Sept 2023, when IDBI Trusteeship approached NCLT for insolvency proceedings against CDEL

- Krishna Yadav

The National Company Law Appellate Tribunal (NCLAT) on Thursday set aside insolvency proceedings against Coffee Day Enterprises Ltd (CDEL), the parent company of Café Coffee Day (CCD), dismissing IDBI Trusteeship's bankruptcy plea over an alleged ₹228 crore default.

The ruling came in response to a plea by Malavika Hegde, a shareholder and director at CDEL challenging an 8 August 2024 National Company Law Tribunal (NCLT) order, which had admitted IDBI Trusteeship's insolvency plea against the company.

The appellate tribunal had provided interim relief by staying the proceedings on 14 August 2024. However, proceedings had resumed as the NCLAT was unable to pass its final order before the Supreme Court's deadline of 21 February. IDBI Trusteeship Services Ltd (IDBITSL) had escalated the matter to Supreme Court, which, on 31 January, directed the NCLAT to resolve pending appeals by 21 February. However, as the appellate tribunal missed this deadline, the insolvency process was temporarily reinstated.