The National Company Law Appellate Tribunal (NCLAT) has set aside an order of the National Company Law Tribunal (NCLT) that allowed corporate insolvency resolution process (CIRP) against Coffee Day Enterprises Ltd (CDEL), the operator of the Cafe Coffee Day chain.
A two-judge panel of the Chennai bench of the NCLAT, comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain, on Thursday quashed the NCLT order.
The appellate tribunal had, in August 2024, stayed the order of NCLT initiating CIRP against the company.
NCLAT passed the order on an appeal filed by Malavika Hegde, a shareholder and director of the company, challenging the NCLT order that allowed a bankruptcy petition filed by IDBI…
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JOHANNESBURG – Global finance institutions are again under pressure to reform as Africa uses G20 to address the continent’s challenges.
Top of the list is the high debt burden carried by emerging economies, who are slapped with high debt servicing costs.
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This includes South Africa, where at least 20 cents of every rand in revenue is used to service its debt.
This has impacted the country’s social spending, with more money spent on debt than on health and education.
On the sidelines of…
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An icon of American orange juice is facing a money crisis. According to Debwire (via CNN), Tropicana Brands Group, whose eponymous orange juice brand is one of the best, has recently suffered a 10% loss in quarterly income and a 4% quarterly revenue loss. The consistently lagging economic performance is stirring whispers of…
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NCLAT Sets Aside Insolvency Process Against Cafe Coffee Day’s Parent Company Moneylife
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Gratuity payments are classified as excluded dues and therefore, remain outside the scope of asset distribution among creditors under the waterfall mechanism in Section 53 of the IBC
The Calcutta High Court ruled that gratuity obligations are not included in the corporate debtor’s liquidation estate as defined under the Insolvency and Bankruptcy Code, 2016 (IBC), and are instead statutorily protected by the Payment of Gratuity Act, 1972.
The court determined that gratuity payments, regardless of the settlement plan, must be made in full and fall outside the waterfall process under Section 53 of the IBC. It further noted that Section 14 of the Payment of Gratuity Act has a superseding effect, guaranteeing that workers’ legal rights…
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On 17 February 2025, the Department of Employment and Workplace Relations (DEWR) issued a discussion paper addressing corporate misuse of the Fair Entitlements Guarantee (FEG).
The paper sets out several options for reform aimed at addressing and putting an end to future misuse of FEG by unscrupulous corporate actors.
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The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that the application under section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) cannot be entertained when the debt is not unequivocally admitted by the Corporate Debtor.
Brief Facts:
The RR Metalmakers India Ltd.(Corporate Debtor) had approached Jaldhi Overseas Pvt Ltd. (Operational Creditor) for chartering of vessel MV Aetolia for carrying cargo from Port Redi to China for delivery to BST (HK) Ltd.- (“BST”) under a Charter Party Agreement dated 15.03.2017. The parties had appointed Bulk Chart as their broker.
The…
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NCLAT Quashes Insolvency Proceedings Against Coffee Day Enterprises NDTV Profit
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Solent View Hotels Ltd (SVH), whose director is Howard Spooner, known as an old friend of Prince Harry, is in the process of being wound-up.
Mr Spooner was also director of Quay Street Ltd (QS), the company previously running the George Hotel and Beach Club, Yarmouth.
QS went bust in April 2023, owing almost £1 million to creditors, as previously reported.
The firm subsequently entered a Business License Agreement (BLA) with SVH, a company incorporated two months prior, with Mr Spooner’s son, Felix Spooner listed as sole director.
The purpose of the BLA was to preserve the value of the company’s business and assets while the liquidation process was ongoing.
According to Companies House, QS and its…
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Bensons Property Group has finalised the purchase of a prime Docklands site days after emerging from voluntary administration.
The Melbourne-based developer secured the 4509sq m site at 194-204 Lorimer Street from Samma Property Group for what industry sources suggest was “just over $20 million”.
The acquisition is the company’s first major move since exiting administration on February 20.
It entered the process in December of 2024 with debts totalling $812 million.
The property, acquired by Samma Property Group from Development Victoria for $22.5 million in late 2021, comes with planning approval for a residential tower.
Samma’s $250-million plan for a 31-storey tower comprising 402 build-to-rent apartments approved in 2023 was due…
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New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Thursday set aside the insolvency proceedings against Coffee Day Enterprises Ltd (CDEL), which owns the Cafe Coffee Day chain. A two-member NCLAT bench of Chennai bench comprising justices Sharad Kumar Sharma and Jatindranath Swain set aside an earlier order passed by the Bengaluru bench of the National Company Law Tribunal.
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…
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The Privy Council has considered an appeal from the Court of Appeal of the Eastern Caribbean Supreme
Court, originating from the courts of the British Virgin Islands (BVI), and delivered a landmark
judgment in Sian Participation Corporation (In Liquidation) v Halimeda International Ltd [2024] UKPC
16. This decision engages the competing public policy considerations of (a) ensuring insolvency
proceedings can progress without undue delay; and (b) upholding parties’ agreement to arbitrate
disputes.
The Privy Council has decided that a debt must be the subject of a genuine dispute on substantial
grounds for the court to stay or dismiss a creditor’s winding up petition in favor of arbitration. It is not
enough…
