The Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) on Friday has issued a stay on the National Company Law Tribunal (NCLT) order for initiating insolvency resolution process of Coffee Day Global Limited that owns the popular Cafe Coffee Day chain.
The NCLAT bench for the hearing comprised Justice Rakesh Kumar Jain and technical member Shreesha Merla on Friday stayed the NCLT order until the next hearing of the appeal filed by Malavika Hedge.
Malavika Hegde, the suspended Director of CDGL and and wife of late VG Siddhartha, had approached the Chennai bench of NCLAT against the NCLT order to initiate Corporate Insolvency Resolution Process (CIRP) against Coffee Day Global.
IndusInd Bank had earlier approached the NCLT on the default of loan amout of Rs 94 crore by the CCD. It was on basis of this application that the NCLT admitted the petition for bankruptcy.
The appeal by Hegde involves a question of whether a moratorium imposed by the Central government on insolvency proceedings due to COVID-19 pandemic.
Earlier on July 20, the Bengaluru bench of the NCLT passed an order over a plea filed by IndusInd Bank, a financial creditor of the company, claiming dues of Rs 94 crore.
