Coffee Day Enterprises stock jumps 20 pc after NCLAT sets aside insolvency proceedings – The Times of India

NEW DELHI: Shares of Coffee Day Enterprises, which owns the Cafe Coffee Day chain, on Monday jumped 20 per cent to hit its upper circuit limit after the National Company Law Appellate Tribunal (NCLAT) set aside the insolvency proceedings against the company. The stock of Coffee Day Enterprises Ltd (CDEL) zoomed 19.97 per cent each to Rs 25.65 and Rs 25.53 apiece — also its 52-week high — on the BSE and National Stock Exchange (NSE), respectively.
In the past four consecutive sessions, the stock has been locked at five per cent lower circuit.
The market is trading in the negative territory with the BSE Sensex declining 360.20 points or 0.49 per cent to 72,837.90, while NSE Nifty slipped 103.05 points or 0.47 per cent to 22,021.65.
On Thursday, the NCLAT had set aside the insolvency proceedings against CDEL.
The NCLAT bench of Chennai had set aside an earlier order passed by the Bengaluru bench of the National Company Law Tribunal (NCLT).
The latest order was pronounced in the open court and a detailed order is still awaited.
CDEL is the parent company of Coffee Day Group which operates the Cafe Coffee Day chain of coffee houses. It also owns and operates a resort, renders consultancy services and is engaged in the sale and purchase of coffee beans.
Last month, the insolvency proceedings against CDEL were resumed as the appellate tribunal NCLAT could not pass the order within the specified deadline of February 21, set by the Supreme Court.
Earlier on August 8 last year, the Bengaluru bench of the NCLT (National Company Law Tribunal) admitted the plea filed by IDBI Trusteeship Services Ltd (IDBITSL) claiming a default of Rs 228.45 crore and appointed an interim resolution professional to take care of the operation of the debt-ridden company.
The suspended board immediately challenged the order before the appellate tribunal NCLAT, which on August 14, 2024, stayed the insolvency proceedings initiated against CDEL.
This NCLAT order was challenged by IDBITSL before the Supreme Court, which had on January 31, 2025 directed the Chennai bench of NCLAT to dispose of the appeal before February 21, 2025.
The apex court had also directed that if the appeal filed by CDEL is not disposed of by NCLAT, the order passed by the appellate tribunal staying the Corporate Insolvency Resolution Process (CIRP) shall stand vacated automatically.
“In the event the appeal is not disposed of by then, the impugned order passed by the Appellate Tribunal shall stand vacated automatically,” it said.
Though NCLAT completed the hearing and reserved its order over the appeal filed by the director of its suspended board, it could not pass the order within the specified time fixed by the Supreme Court.
Coffee Day Enterprises is in trouble after the death of founder Chairman V G Siddhartha in July 2019. It is paring its debts through asset resolutions and has significantly scaled down from the time the trouble started.