The National Company Law Tribunal (NCLT) at Bengaluru admitted the insolvency plea filed by IndusInd bank against Coffee Day Global, the parent company of famous coffee chain, Cafe Coffee Day (CCD) [Indus Ind Bank Ltd. v. Coffee Day Global Ltd]. .The tribunal also appointed Shailendra Ajmera as the interim resolution professional.A bench of judicial member of retired Justice T Krishnavalli and technical member Manoj Kumar Dubey passed the order after it was approached by IndusInd Bank alleging that Coffee Day had defaulted on a loan amount of over ₹94 crores.Based on the petition, the bench admitted the petition for bankruptcy.“The present petition being complete and having established the default in payment of the financial debt and for the default amount being above ₹1 crore, the petition is admitted in respect of Coffee Day Global Limited under section 7 of the I & B Code, 2016. Accordingly, a moratorium is declared” the order passed by NCLT on July 20 said. .Cafe Coffee Day was promoted by late VG Siddhartha who had died by suicide in 2019. IndusInd claimed that as on April 7, 2022, the company had a total outstanding amount of ₹94.1 crores. Hence, it filed the present petition..[Read order]
The National Company Law Tribunal (NCLT) at Bengaluru admitted the insolvency plea filed by IndusInd bank against Coffee Day Global, the parent company of famous coffee chain, Cafe Coffee Day (CCD) [Indus Ind Bank Ltd. v. Coffee Day Global Ltd]. .The tribunal also appointed Shailendra Ajmera as the interim resolution professional.A bench of judicial member of retired Justice T Krishnavalli and technical member Manoj Kumar Dubey passed the order after it was approached by IndusInd Bank alleging that Coffee Day had defaulted on a loan amount of over ₹94 crores.Based on the petition, the bench admitted the petition for bankruptcy.“The present petition being complete and having established the default in payment of the financial debt and for the default amount being above ₹1 crore, the petition is admitted in respect of Coffee Day Global Limited under section 7 of the I & B Code, 2016. Accordingly, a moratorium is declared” the order passed by NCLT on July 20 said. .Cafe Coffee Day was promoted by late VG Siddhartha who had died by suicide in 2019. IndusInd claimed that as on April 7, 2022, the company had a total outstanding amount of ₹94.1 crores. Hence, it filed the present petition..[Read order]