NCLAT Halts Insolvency Proceedings Against Coffee Day Enterprises

The National Company Law Appellate Tribunal (NCLAT) has temporarily halted insolvency proceedings against Coffee Day Enterprises Ltd (CDEL). The stay order, issued by the Chennai bench, postpones any actions following the NCLT's earlier decision. IDBI Trusteeship Services Ltd (IDBITSL) is directed to submit a counter affidavit.

The National Company Law Appellate Tribunal (NCLAT) on Wednesday stayed the insolvency proceedings against Coffee Day Enterprises Ltd (CDEL), which operates the Cafe Coffee Day chain, until the next hearing.

Issuing an interim order, the Chennai-based bench put a hold on the operations of the initial National Company Law Tribunal (NCLT) order.

The NCLAT also instructed CDEL's financial creditor, IDBI Trusteeship Services Ltd (IDBITSL), which claims a default of Rs 228.45 crore, to file a counter affidavit addressing the company's submissions.

(With inputs from agencies.)