NCLT Bengaluru Allows Amendment in Coffee Day Insolvency Plea, Permits Change in Date of Default

June 1, 2026 : The National Company Law Tribunal (NCLT), Bengaluru Bench, has allowed an amendment application in an insolvency case involving Coffee Day Global Limited, permitting the applicant to revise the alleged date of default from November 27, 2020, to September 30, 2019. The order was passed by a Bench comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada while hearing an application arising out of a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016.

The dispute stems from insolvency proceedings initiated by Rechtsanwalt Dr. Christian Bachmann, acting as Insolvency Administrator of Austria-based Coffee Day Gastronomic und Kaffeehandels GmbH, against Coffee Day Global Limited. The applicant sought permission to amend Form-5 in the insolvency petition to reflect September 30, 2019, as the actual date of first default instead of November 27, 2020. According to the applicant, the earlier date was inadvertently mentioned because the Vienna Commercial Court had awarded interest from that date while adjudicating a separate recovery dispute between the parties.

The applicant argued that Coffee Day Global had issued a Letter of Comfort on May 2, 2019, and had continued making payments through AM Coffee Day International Ltd. until August 2019. The last payment was allegedly made on August 28, 2019. It was contended that no further payments were made thereafter, causing financial distress to the Austrian entity and eventually leading to insolvency proceedings before the Vienna Commercial Court. The applicant maintained that the first actual default occurred on September 30, 2019, when the next payment allegedly became due but was not paid.

The applicant further relied on proceedings before the Vienna Commercial Court, which had passed a judgment directing Coffee Day Global Limited to pay more than EUR 328,000 along with interest and legal costs. The applicant clarified that the foreign court’s reference to November 27, 2020, related only to the commencement of interest calculation and not the actual occurrence of default. Therefore, the amendment was described as a corrective and clarificatory step rather than an attempt to introduce a new claim or cause of action.

Coffee Day Global Limited opposed the amendment and alleged that the application had been filed only after objections were raised regarding Section 10A of the IBC. Section 10A, introduced during the COVID-19 pandemic, bars initiation of insolvency proceedings for defaults occurring during a specified period. The company argued that changing the date of default was a deliberate attempt to avoid the statutory protection available under Section 10A. It also contended that the original insolvency petition and the record of default filed before the tribunal specifically mentioned November 27, 2020, and that no documentary evidence had been produced to establish a payment obligation falling due on September 30, 2019.

The respondent further challenged the legal enforceability of the Letter of Comfort, arguing that it did not constitute a valid guarantee under Section 126 of the Indian Contract Act, 1872. The company also questioned the maintainability of the proceedings, the authority of the applicant’s representatives, and the reliance placed on a foreign judgment passed by an Austrian court. It asserted that Austria is not a reciprocating territory under Section 44A of the Code of Civil Procedure, 1908, and therefore the foreign decree could not be directly enforced in India.

After considering the submissions of both sides, the NCLT observed that there was “absolutely no basis available for relying on, an out of blue date of 27.11.2020 to be the date of default.” The tribunal noted that merely because the Vienna Commercial Court awarded interest from that date could not automatically establish it as the date of default for insolvency purposes.

The Bench reiterated the settled legal principle that while considering amendment applications, courts and tribunals are not required to assess the merits of the proposed amendment itself. Instead, the focus should be on whether the amendment assists in the effective and complete adjudication of the dispute. The tribunal observed that the proposed amendment did not introduce a fresh cause of action or withdraw any admission already made by the applicant. Rather, it appeared to align the pleadings with the factual case already set out in the insolvency petition.

In a significant observation, the NCLT stated that issues relating to the enforceability of the Letter of Comfort, implementation of the foreign judgment, and authority of the signatories were not relevant for deciding the amendment application and would be examined during the hearing of the main insolvency petition. The tribunal remarked that even if the applicant sought the amendment after realizing weaknesses exposed by the respondent’s objections, the request could not be rejected solely on that ground because it did not fundamentally alter the nature of the case.

Consequently, the Bengaluru Bench allowed the amendment application and directed the petitioner to correct the date of default to September 30, 2019, at the relevant places in the insolvency petition. The tribunal also directed the filing of an updated petition within three weeks and granted the respondent liberty to file additional objections thereafter.

The ruling is important because the determination of the date of default plays a crucial role in insolvency proceedings under the IBC. The issue can affect limitation periods, applicability of Section 10A protections, and the overall maintainability of a corporate insolvency resolution process. While the order does not decide the merits of the insolvency claim itself, it clears the way for the tribunal to examine the substantive disputes in the main petition based on the amended pleadings.

Case Reference: Rechtsanwalt Dr. Christian Bachmann, Insolvency Administrator of Coffee Day Gastronomic und Kaffeehandels GmbH vs Coffee Day Global Limited, IA No. 722 of 2025 in CP (IB) No. 232/BB/2024.