NCLAT to Hear Appeal Challenging NCLT order To Admit Insolvency Plea Against Cafe Coffee Day

NCLAT to Hear Appeal Challenging NCLT order To Admit Insolvency Plea Against Cafe Coffee Day

The National Company Law Appellate Tribunal (NCLAT), Chennai bench is set to hear an appeal challenging the order passed by the National Company Law Tribunal (NCLT) to admit the insolvency plea against coffee chain company, Cafe Coffee Day (CCD).

The appeal has been filed by Malvika Hegde, the Ex- Director and wife of late VG Siddhartha, who had promoted CCD prior to his untimely demise in 2019.

The plea was heard by coram comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shreesha Merla (Technical Member).

After hearing submissions, the NCLAT reserved the matter for orders with regards to the admission of insolvency plea as well as the stay of the NCLT order under challenge.

In an order dated 20 July, the NCLT, Bengaluru had admitted the insolvency plea filed by IndusInd Bank against Coffee Day Global. By the same order, the NCLT had also appointed Shailendra Ajmera as the interim resolution professional.

IndusInd Bank approached the NCLT alleging that CCD defaulted on a loan amount of over Rs. 94 crores. Based on the petition, the NCLT had admitted the petition for bankruptcy.

Hegde was represented before the NCLAT by Senior Advocate PH Arvindh Pandian, instructed by Advocates Pawan Jhabakh, Abisek Raman, and Jerin Asher Sojan.