An insolvency petition has been submitted against Coffee Day Enterprises in accordance with Section 7 of the Insolvency and Bankruptcy Code of 2016, seeking initiation of insolvency proceedings.

IDBI Trusteeship Services Limited has lodged the application before the National Company Law Tribunal in Bengaluru, asserting an alleged default of INR 228.45 crore by Coffee Day Enterprises.

“The Company is seeking appropriate legal advice and will take all appropriate steps to protect its interest in the aforesaid matter,” Coffee Day Enterprises said in a filing.

This application has been submitted nearly one month following a stay order issued by the National Company Law Appellate Tribunal (NCLAT), which had previously halted a National Company Law Tribunal (NCLT) directive to commence insolvency proceedings against the company.

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“This is to inform you that an application has been filed against the Company under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy Rules, 2019 by IDBI Trusteeship Services Limited before the National Company Law Tribunal, Bengaluru for alleged default of INR 228,45,74,180.

“The Company is seeking appropriate legal advice and will take all appropriate steps to protect its interest in the aforesaid matter,” the company said in the filing.