NCLT Bengaluru Admits Café Coffee Day’s Parent Company Into Insolvency
Pallavi Mishra
31 July 2023 11:25 AM GMT
The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of Justice (Retd.) T Krishnavalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), while adjudicating a petition filed in Indus Ind Bank Limited v M/s Coffee Day Global Limited, has initiated Corporate Insolvency Resolution Process against M/s Coffee Day Global Ltd., which is the parent company...
The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of Justice (Retd.) T Krishnavalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), while adjudicating a petition filed in Indus Ind Bank Limited v M/s Coffee Day Global Limited, has initiated Corporate Insolvency Resolution Process against M/s Coffee Day Global Ltd., which is the parent company of the Coffee Day Group and Coffee Day Enterprises Ltd., which runs a multinational coffeeshop named ‘Café Coffee Day’. Mr. Shailendra Ajmera has been appointed as the Interim Resolution Professional (IRP).
Background Facts
Coffee Day Global Limited (“Corporate Debtor/CCD”) is a company promoted by Late Mr. V.G. Siddharth and belongs to the Coffee Day group. The Corporate Debtor is engaged in the retail business of coffee and is also the parent company of Coffee Day Enterprises Ltd, which runs a multinational chain of coffeeshops named Café Coffee day.
The Corporate Debtor had availed credit facilities from the Indus Ind Bank Limited (“Financial Creditor”). The account of Corporate Debtor was declared a Non Performing Asset (“NPA”) in 2020 and the loan could not be repaid to the Financial Creditor.
The Financial Creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor, over a default of Rs. 94 Crores.
The NCLT noted that the Corporate Debtor has not disputed the default amount, the petition is within limitation and crosses the threshold limit of Rs. 1 Crores.
Accordingly, on 20.07.2023 the NCLT admitted the Corporate Debtor into CIRP and appointed Mr. Shailendra Ajmera as the Interim Resolution Professional.
Case Title: Indus Ind Bank Limited v M/s Coffee Day Global Limited
Case No.: C.P (IB) No. 132/BB/2022
Counsel for Petitioner: Ms. Chitra Nirmala
Counsel For the Respondent: Shri Bibhas V. Kittur
