Winning Bizness Desk

Mumbai.In a significant development, insolvency proceedings against Coffee Day Enterprises Limited (CDEL) have resumed. This follows the National Company Law Appellate Tribunal (NCLAT) missing the Supreme Court's February 21 deadline to issue its order.

Earlier, the Chennai bench of the NCLAT had concluded hearings and reserved its judgment on an appeal filed by a suspended director of CDEL's board. In a regulatory filing, CDEL confirmed that since the appeal was not resolved within the stipulated timeframe, the stay on the Corporate Insolvency Resolution Process (CIRP) has been lifted, and the Interim Resolution Professional (IRP) has been reinstated as of February 22, 2025. The company noted that while the order has been reserved, it has yet to be pronounced.

Proceedings against CDEL initially commenced on August 8, 2024

The insolvency proceedings against CDEL initially commenced on August 8, 2024, when the Bengaluru bench of the National Company Law Tribunal (NCLT) admitted a petition by IDBI Trusteeship Services Limited (IDBITSL), alleging a default of ₹228.45 crore. CDEL, the parent company of the Coffee Day Group, operates Café Coffee Day outlets, a resort, consultancy services, and coffee bean trading.

On August 14, 2024, the NCLAT stayed the proceedings after the suspended board challenged the initiation of insolvency. Subsequently, IDBITSL approached the Supreme Court, which on January 31, 2025, directed the NCLAT's Chennai bench to resolve the appeal by February 21. The Supreme Court further ruled that if the appeal was not settled within this period, the stay on CDEL's insolvency process would automatically be lifted.

CDEL has faced financial challenges since the demise of its founder, V.G. Siddhartha, in July 2019. The company has been striving to reduce its debt through asset sales and restructuring efforts.