Coffee Day Global Ltd (CDGL) has reached a settlement with its financial creditor IndusInd Bank, following which the two parties have withdrawn the insolvency litigation.

CDGL is the material subsidiary of Coffee Day Enterprises Ltd (CDEL).

As the settlement was reached, the National Company Law Appellate Tribunal (NCLAT) set aside a July order of the National Company Law Tribunal (NCLT), which had admitted CDGL to insolvency. This has come after the private sector bank filed a petition at the tribunal alleging a loan default of Rs 94 crore.

The development led to shares of CDEL ending at the 20 per cent upper circuit on the bourses on Wednesday.

It shot up by 19.77 per cent to end at Rs 51.26 on the BSE. During the day, it jumped 20 per cent to Rs 51.36 — its upper circuit limit.

On the NSE, it zoomed 20 per cent to settle at Rs 51.30. In volume terms, 31.18 lakh shares of the company were traded on the BSE and over 2 crore shares on the NSE during the day.

CDEL said in a regulatory filing that the private sector lender has assigned its loan of CDGL to an asset reconstruction company (ARC) and filed a joint memo to set aside the NCLT order of July 20 with NCLAT, Chennai.

At the hearing on Wednesday, the counsel representing CDGL and IndusInd Bank informed the Chennai bench of NCLAT about the settlement and sought permission to withdraw insolvency litigations.