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The appeal was in response to the order passed by the NCLT in Bangalore, which had allowed Indusland Bank's application seeking CIRP as Coffee Day Global had defaulted on a loan of Rs. 94 crores
The National Company Law Appellate Tribunal in Chennai has set aside the order of the National Company Law Tribunal in Bangalore, which had permitted the initiation of the Corporate Insolvency Resolution Process (CIRP) against Coffee Day Global Limited, famously known as Cafe Coffee Day.
The order passed by Justice M Venugopal and Technical Member Shreesha Merla, came after both Cafe Coffee Day and Induslnd Bank informed the tribunal that they had reached a settlement.
“In view of the fact that the ‘settlement’ was arrived at between the ‘Appellant’ and the ‘1 st Respondent/Bank’, which is not disputed by the Ld. Counsel for the 1st Respondent/Bank, this Tribunal, takes on Record the ‘memo’ dated 07.09.2023 filed before the ‘Office of Registry of NCLAT’, Chennai and pursuant to the ‘settlement’ being arrived at, this ‘Tribunal’ allows the instant Appeal, by setting aside the impugned order dated 20.07.2023, passed by the Adjudicating Authority / Tribunal in CP(IB)No.132/BB/2022 on the file of ‘NCLT’ Bengaluru Bench and dismisses the main Company Petition,” the order reads.
The bench was presiding over an appeal filed by Malvika Hegde, the former director and wife of Café Coffee Day (CCD) founder VG Siddhartha.
The appeal was in response to the order passed by the NCLT in Bangalore, which had allowed IndusInd Bank's application seeking CIRP as Coffee Day Global had defaulted on a loan of Rs. 94 crores.
The NCLAT bench was also informed that a joint memorandum had been submitted before the registry on September 7, in which the debt owed had been assigned to an asset reconstruction company.
Consequently, taking this into account, the NCLAT permitted the withdrawal of the Corporate Insolvency Resolution Process (CIRP) proceedings against Coffee Day Global.
Coffee Day Global Limited owns and operates 495 cafes across 158 cities, along with 285 CCD Value Express kiosks. Additionally, the company owns more than 38,000 vending machines in corporate offices.
Malvika Hegde was represented by Senior Advocate P.H. Arvindh Pandian, Advocates Pawan Jhabakh, Abishek Raman, Jerin Asher Sojan,
IndusInd Bank was represented by Advocate Chitra Nirmala.
Case title: Malvika Hegde vs IndusInd Bank & Anr
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