Hindusthan National Glass and Industries Ltd (HNGIL) has served a default notice on B9 Beverages Ltd, the maker of the Bira 91 range of beer, as it plans to drag the debt-ridden brewer to the insolvency tribunal NCLT.
| Photo Credit:
bl-online Administrator
Hindusthan National Glass and Industries Ltd (HNGIL) has served a default notice on B9 Beverages Ltd, the maker of the Bira 91 range of beer, as it plans to drag the debt-ridden brewer to the insolvency tribunal NCLT.
HNGIL, a container glass manufacturer, has issued the notice under Section 8 of the Insolvency and Bankruptcy Code (IBC), a mandatory step before filing an application for commencement of the Corporate Insolvency Resolution Process (CIRP).
In the notice, HNGIL — an operational creditor of B9 Beverages Ltd — claimed default in payments and sought recovery of ₹11.77 crore for glass bottles manufactured against confirmed purchase orders but allegedly not lifted by B9 Beverages.
Last month, Bira 91 Founder Ankur Jain stepped down from the board and all executive positions at parent company B9 Beverages Ltd, along with members of his family, after settling with the company's lenders and investors, bringing to an end a prolonged financial crisis at the firm.
As per IBC provisions, B9 Beverages has ten days from receipt of the notice to pay the amount or to place on record any pre-existing dispute, failing which HNGIL may move the National Company Law Tribunal (NCLT) for initiation of a corporate insolvency resolution process against the company, under Section 9 of the Code.
HDFC Bank weighing deputy MD Bharucha, outsider for CEO, sources say
HNGIL Chief Strategy Officer Suraj Mehta said, "We acknowledge that a demand notice under the IBC has been issued to Bira 91, following the legal notice sent earlier this year in relation to certain commercial and contractual issues. Our position is set out in the notice and we remain open to a resolution. Since the matter is under legal consideration, it would not be appropriate for us to comment further at this stage." The dispute concerns more than 51 lakh customised amber glass bottles of 650 ml, manufactured against three purchase orders placed by B9 Beverages in June and September 2024.
The stock is lying at HNGIL's plants at Bahadurgarh in Haryana, Puducherry, and Rishra in West Bengal. The bottles carry the brewer's own branding and were made to its technical specification, which means they cannot be sold to any other buyer.
The amount claimed comprises ₹ 7.03 crore towards the value of the manufactured goods, Rs 1.12 crore towards storage charges accrued on the unlifted stock and interest on both heads at the contractual rate, after adjusting a credit of Rs 13.72 lakh standing to the account of B9 Beverages, as mentioned in the notice.
The demand notice follows a legal notice issued to B9 Beverages on May 6, 2026, which asked the company to clear dues and to provide a firm schedule for lifting the entire stock within 15 days.
According to HNGIL, neither payment nor lifting of the stock has been scheduled. Both notices have been issued through the company's counsel, Nyaayam Associates LLP.
Section 8 of the IBC allows an operational creditor, being a party-owed money for goods supplied or services rendered, to formally demand payment of an unpaid debt from a company before approaching the tribunal.
The glass bottles were manufactured specifically to B9 Beverages' requirements and were not readily marketable to third parties because of their customised specifications, the notice said.
It further alleged that the brewer's failure to lift the goods had caused "severe prejudice and financial hardship" to HNGIL, including additional warehousing expenses, blockage of working capital and loss of business opportunities due to capacity remaining tied up.
Source: Read the original article on www.thehindubusinessline.com
