Cafe Coffee Day Share Price: Shares of Coffee Day Enterprises, owner of Cafe Coffee Day chain, surged 20 per cent on Monday after the National Company Law Appellate Tribunal (NCLAT) dismissed the insolvency proceedings against the company. Shares of Coffee Day Enterprises Ltd surged 19.97 per cent to Rs 25.65 and Rs 25.53, their respective 52-week highs on the BSE and National Stock Exchange (NSE). The stock has hit a lower circuit of 5 per cent in the last four consecutive sessions.

The market is trading in the negative zone, with the BSE Sensex trading 360.20 points, or 0.49 per cent, lower at 72,837.90, while the NSE Nifty was down 103.05 points, or 0.47 per cent, at 22,021.65. On Thursday, the NCLAT dismissed the insolvency proceedings against CDEL. The NCLAT bench in Chennai set aside an earlier order passed by the Bengaluru bench of the National Company Law Tribunal.

The latest order has been pronounced in open court and the detailed order is still awaited.

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CDEL is the parent company of the Coffee Day Group that operates the Cafe Coffee Day chain of coffee houses. It also owns and operates resorts, provides consultancy services and is engaged in the sale and purchase of coffee beans.

Last month, the bankruptcy case against CDEL was revived after appellate tribunal NCLAT failed to pass an order by the February 21 deadline set by the Supreme Court.

NCLT imposed restrictions last year

Earlier, on August 8 last year, the Bengaluru bench of the NCLT (National Company Law Tribunal) admitted a plea by IDBI Trusteeship Services Ltd claiming default of Rs 228.45 crore and appointed an interim resolution professional to look after the management of the debtor company.

The suspended board immediately challenged the order before the appellate tribunal NCLAT, which stayed the insolvency proceedings initiated against CDEL on August 14, 2024.

The NCLAT order was challenged by IDBITSL in the Supreme Court, which on January 31, 2025, directed the Chennai bench of NCLAT to dispose of the petition before February 21.

The Supreme Court also directed that if the appeal filed by CDEL is not disposed of by NCLAT, the order of the appellate tribunal staying the corporate insolvency resolution process (CIRP) will automatically stand vacated. Though NCLAT completed the hearing and reserved its order on the appeal filed by the suspended board director, it failed to pass the order within the time limit set by the Supreme Court.

Coffee Day Enterprises has been in trouble since the death of its founder chairman VG Siddhartha in July 2019. The number of loans has come down through asset resolution and has fallen significantly since the problems began.

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(With Inputs From PTI)