Coffee Day Continues Legal Negotiations During NCLAT Proceedings

The parent company of Café Coffee Day, Coffee Day Enterprises Ltd (CDEL), is navigating a high-stakes insolvency case triggered by IDBI Trusteeship’s ₹228.45 crore repayment claim. 

The National Company Law Tribunal (NCLT) initiated insolvency proceedings against Coffee Day Enterprises Ltd (CDEL) in July 2023. 

The NCLT admitted the case, but CDEL, led by Executive Director Malavika Hegde, challenged it at the NCLAT, which stayed the insolvency proceedings in August 2023.

In a recent twist, the Supreme Court set a February 21, 2025, deadline for NCLAT to resolve the appeal. If not settled by then, the insolvency process will restart. Meanwhile, CDEL is in settlement talks with IDBI to avoid insolvency and focus on recovery.