Legal Proceedings For Coffee Day Enterprises Amid Settlement Negotiations
Legal Proceedings For Coffee Day Enterprises Amid Settlement Negotiations
Coffee Day Enterprises Limited has informed the exchange that legal proceedings are ongoing before the tribunal, with settlement negotiations also taking place alongside IDBI Trusteeship Services Ltd. "The arguments in NCLAT are ongoing, and in parallel, the parties are negotiating for settlement," the company stated in a regulatory filing.
The matter involves IDBI Trusteeship Services Ltd's approach to the Supreme Court, which directed the concerned NCLAT, Chennai to dispose of the pending appeal by February 21. If the appeal is not resolved by that date, the NCLT Bengaluru's impugned order under Section 7 of the Corporate Insolvency Resolution Process (CIRP) will be automatically vacated.
The National Company Law Tribunal, Bengaluru had initiated insolvency proceedings against Coffee Day Enterprises Ltd (CDEL) on August 8, 2024. Subsequently, the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceedings following an appeal filed by Malvika Hegde, a shareholder and director of Coffee Day Enterprises, challenging the NCLT's August 8 order.
