BENGALURU: The Chennai Bench of National Company Law Appellate Tribunal (NCLAT) on Friday stayed an order of the admission of a corporate insolvency plea by the NCLT Bengaluru against Cafe Coffee Day (CCD).
This comes as a big relief to the coffee chain company. The order has been put on hold till September. Last month, Coffee Day Global, which manages the CCD chain, was admitted for corporate insolvency. The company was facing bankruptcy after IndusInd Bank filed a petition to the NCLT Bengaluru.
In a BSE filing on Friday, the company said, “The said NCLT order was appealed before National Company Law Appellate Tribunal, Chennai (NCLAT). The NCLAT has issued an order dated 11th August 2023 granting stay against the NCLT order dated 20th July 2023.”
Malavika Hegde, CCD’s former director and wife of late VG Siddhartha, had approached NCLAT Chennai bench against the NCLT order. The matter will come for hearing on September 20. “In the meanwhile, till the next date of hearing, operation of the impugned order shall remain stayed,” the NCLT order said.
Earlier in an exchange filing, CCD said, “The application filed by one of the lenders against the material subsidiary Coffee Day Global Limited before National Company Law Tribunal (NCLT), Bengaluru, has been admitted (oral order) under Section 7 of Insolvency and Bankruptcy Code, 2016 for initiating
Corporate Insolvency Resolution Process (CIRP) for Rs 94 Crores.”
It added, “However, the Material subsidiary is waiting for the written order from the NCLT, Bengaluru Bench. Further, the Material Subsidiary has informed the Company that it will take the required legal action in this regard.” Meanwhile, CCD has rescheduled its board meeting to announce financial results of the company from August 11 to August 14.