Why Bira 91 Maker B9 Beverages Faces INR 11.77 Crore Insolvency Demand From HNGIL

Hindusthan National Glass and Industries (HNGIL) has issued a default notice to B9 Beverages under Section 8 of the Insolvency and Bankruptcy Code (IBC), seeking payment of INR 11.77 crore in alleged unpaid dues, PTI reported. HNGIL is an operational creditor of B9 Beverages.

The notice is a mandatory step before an operational creditor can approach the National Company Law Tribunal (NCLT) to seek commencement of the Corporate Insolvency Resolution Process (CIRP). The development comes as B9 Beverages, the debt-ridden maker of Bira 91 beer, continues to face financial difficulties. Bira Beer Maker B9 Beverages Private Ltd Suffers INR 80 Crore Sales Loss After Dropping Word ‘Private’ From Its Name, Know Why.

What Has HNGIL Claimed?

HNGIL has alleged that B9 Beverages defaulted on payments relating to glass bottles manufactured against confirmed purchase orders but not lifted by the company. The manufacturer is seeking INR 11.77 crore, covering the value of the manufactured bottles, storage charges and contractual interest, after adjustments.

Under Section 8 of the IBC, B9 Beverages has 10 days from receiving the demand notice to make the payment or bring a pre-existing dispute on record. If the matter is not resolved, HNGIL can approach the NCLT under Section 9 of the IBC. Subhash Chandra’s INR 6.5-Crore Repayment Plan Faces Challenge as PSU Lenders Move Against NCLT Nod.

“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,” Suraj Mehta, Chief Strategy Officer at HNGIL said.

What Is The Dispute Over The Glass Bottles?

According to the report, the dispute involves more than 51 lakh customised 650 ml amber glass bottles manufactured by HNGIL against three purchase orders placed by B9 Beverages in June and September 2024. The bottles remain at HNGIL's plants in Bahadurgarh in Haryana, Puducherry and Rishra in West Bengal because they were not picked up by B9 Beverages.

A key issue is that the bottles carry B9 Beverages' branding and were manufactured according to the company's technical specifications. As a result, HNGIL says they cannot readily be sold to another buyer.

How The INR 11.77 Crore Claim Was Calculated

HNGIL's demand comprises INR 7.03 crore towards the value of the manufactured goods and INR 1.12 crore in storage charges that accrued on the unlifted stock.

The company has also sought contractual interest on both amounts. A credit of INR 13.72 lakh standing to B9 Beverages' account was adjusted while calculating the amount claimed.

HNGIL had previously sent B9 Beverages a legal notice on May 6, asking it to clear the dues and provide a confirmed schedule for collecting the stock within 15 days. According to HNGIL, neither payment nor a schedule for lifting the bottles was provided. Both notices were issued through the company's counsel, Nyaayam Associates LLP.

Why HNGIL Has Issued The Demand Notice

Section 8 of the IBC allows an operational creditor to formally demand payment of an unpaid operational debt before approaching the tribunal.

HNGIL has argued that because the bottles were produced specifically for B9 Beverages, they are not readily marketable to third parties.

The manufacturer has alleged that B9's failure to lift the bottles has caused “severe prejudice and financial hardship” through additional warehousing costs, blocked working capital and lost business opportunities arising from tied-up production capacity.

HNGIL's notice is seeking that B9 “unconditionally repay the unpaid operational debt (in default) in full within 10 days from the receipt of this letter”, failing which it would initiate CIRP against the company.

What Is The Financial Status Of B9 Beverages?

B9 Beverages, which owns the Bira 91 beer brand, has been facing a prolonged financial crisis.

Bira 91 Founder Ankur Jain stepped down from the company's board and all executive positions at parent company B9 Beverages in July. Members of his family also exited after settling with lenders and investors.

According to the report, B9 Beverages has been out of production since September 2025 and is estimated to have debt of around INR 1,000 crore.

Bira 91 Restructuring Plans

Alternative investment firm Anicut Capital, which held a lien on the shares, is understood to be leading the restructuring process along with existing shareholders Peak XV Partners and Kirin Holdings.

The proposed recapitalisation is aimed at clearing statutory liabilities, employee dues and vendor payments before the company resumes operations, PTI reported.

Several companies are also reportedly interested in acquiring B9 Beverages. These include Varun Beverages, the bottling partner of PepsiCo in India and some other countries, which has formed a new step-down subsidiary, KIVA Spirits.

What Happens Next?

The HNGIL notice does not by itself initiate insolvency proceedings against B9 Beverages.

The immediate step is for B9 to respond within the 10-day period specified under the IBC. If the alleged debt is not paid and no legally recognised pre-existing dispute prevents the action, HNGIL may file an application before the NCLT under Section 9.

The case could therefore add another layer of pressure on B9 Beverages as the company works through its financial restructuring and seeks to address outstanding obligations to lenders, employees and vendors.

(The above story first appeared on LatestLY on Aug 31, 2026 01:55 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).