NCLAT Quashes Insolvency Proceedings Against Café Coffee Day’s Parent Company

The National Company Law Appellate Tribunal (NCLAT), Chennai, has set aside the Corporate Insolvency Resolution Process (CIRP) initiated against Coffee Day Enterprises Ltd. (CDEL), the parent company of Café Coffee Day.

The National Company Law Tribunal (NCLT) had earlier admitted the insolvency plea filed by IDBI Trusteeship Limited (ITSL), claiming a default of ₹228 crore.  

However, Malavika Hegde, CDEL director, challenged this, arguing that ITSL was not a financial creditor under Section 7 of the Insolvency and Bankruptcy Code (IBC).

NCLAT ruled in CDEL’s favor, overturning the NCLT order and dismissing the insolvency proceedings.