The National Company Law Appellate Tribunal (NCLAT) has set aside the NCLT order allowing insolvency proceedings against Coffee Day Enterprises Ltd.
Image source: Indrajit Das, CC BY-SA 3.0, via Wikimedia Commons
NCLT initiated the insolvency case against Coffee Day Enterprises, but NCLAT later stayed and ultimately overturned the decision.
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Shareholder and director Malavika Hegde led the legal fight against the insolvency plea filed by IDBI Trusteeship Ltd.
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IDBI Trusteeship filed the insolvency case citing a ₹228 crore default by Coffee Day
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CCD's parent company struggled with ₹7,000 crore debt, defaulting on coupon payments between 2019 and 2020.
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NCLAT initially stayed proceedings but had to act before the Supreme Court’s deadline of February 21, 2025.
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CCD's cafe network shrank to 450 locations in 141 cities, but its vending machine business expanded significantly.
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CCD previously faced an insolvency plea from IndusInd Bank for ₹94 crore, which was settled mutually.
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Founded in 1996 by VG Siddhartha, CCD struggled after his death in 2019, leading to massive debt restructuring.
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With the insolvency case dismissed, CCD aims to stabilize its business and navigate financial challenges.
Image source: Photo by Cafe Coffee Day, licensed under CC BY-ND, via flickr.com
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Image source: Indrajit Das, CC BY-SA 3.0, via Wikimedia Commons