Bira 91 Faces Rs 11.77 Crore Default Claim as HNGIL Threatens NCLT Action

Hindusthan National Glass and Industries Ltd (HNGIL) has served a Section 8 demand notice on B9 Beverages Ltd, the company behind Bira 91, over an alleged Rs 11.77 crore payment default linked to customised beer bottles. The glass manufacturer has indicated that it could approach the National Company Law Tribunal (NCLT) if the dues are not resolved within the prescribed period.

HNGIL, an operational creditor of B9 Beverages, issued the notice under the Insolvency and Bankruptcy Code (IBC), a required step before an operational creditor can seek initiation of the Corporate Insolvency Resolution Process (CIRP).

According to the notice, the claimed amount relates to more than 51 lakh customised amber glass bottles of 650 ml manufactured for B9 Beverages against three purchase orders placed in June and September 2024. The bottles remain stored at HNGIL facilities in Bahadurgarh, Haryana, Puducherry and Rishra, West Bengal.

HNGIL has claimed Rs 7.03 crore towards the manufactured bottles and Rs 1.12 crore in storage charges, along with contractual interest on the two amounts. The claim has been adjusted against a Rs 13.72 lakh credit balance held in B9 Beverages' account.

The manufacturer said the bottles were produced according to B9 Beverages' technical specifications and carry the brewer's branding, limiting their ability to be sold to another buyer. HNGIL has also cited warehousing costs and blocked working capital arising from the unlifted inventory.

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 demand notice follows a legal notice issued by HNGIL on May 6, 2026, seeking payment and a firm schedule for B9 Beverages to collect the entire inventory within 15 days. HNGIL said neither payment nor a lifting schedule has been provided.

Under Section 8 of the IBC, an operational creditor can issue a formal demand for an unpaid debt before seeking insolvency proceedings. B9 Beverages has ten days from receipt of the demand notice to make the payment or bring a pre-existing dispute on record. If the matter is not resolved, HNGIL may approach the NCLT under Section 9 of the Code.

HNGIL's notice asked B9 Beverages to "unconditionally repay the unpaid operational debt (in default) in full within ten days from the receipt of this letter", failing which it could initiate CIRP proceedings.

The development adds another financial challenge for B9 Beverages, which has been out of production since September 2025 and is estimated to have debt of around Rs 1,000 crore. The company has been undergoing a restructuring process following a prolonged financial crisis.

Bira 91 founder Ankur Jain stepped down from the board and all executive positions at B9 Beverages last month, along with members of his family, after a settlement with lenders and investors.

Anicut Capital, which held a lien on the relevant shares, is understood to be leading the restructuring process with existing shareholders Peak XV Partners and Kirin Holdings. The proposed recapitalisation is intended to address statutory liabilities, employee dues and vendor payments before a potential resumption of operations.

There have also been reports of interest from potential buyers, including Varun Beverages, which recently formed a new step-down subsidiary, KIVA Spirits, as it expands into alcoholic beverages. Any potential acquisition of B9 Beverages remains subject to the ongoing restructuring process.