The NCLAT Chennai bench today reserved orders on the aspect of admission of the insolvency plea as well as on whether the NCLT order should be stayed.
An appeal has been filed before the National Company Law Appellate Tribunal (NCLAT) challenging the recent order of the National Company Law Tribunal (NCLT) to admit the insolvency plea against coffee chain company, Cafe Coffee Day (CCD).
The appeal filed by Malvika Hegde, the former director of CCD’s parent company Coffee Day Global Limited, was heard today by a coram of the NCLAT comprising judicial member, Justice Rakesh Kumar Jain, and technical member, Shreesha Merla.
After hearing submissions, the NCLAT Chennai bench reserved the matter for orders with regard to the admission of the insolvency plea as well as the stay of the NCLT order under challenge.
In an order dated July 20, 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 ₹94 crores. Based on the petition, the NCLT admitted the petition for bankruptcy.
This order has now been challenged before the NCLAT by Malavika Hegde, who was formerly the director of Coffee Day and wife of late VG Siddhartha, who had promoted CCD prior to his untimely demise in 2019.
