Bira 91 facing insolvency threat over ₹11cr+ unpaid dues
What's the story
Bira 91, a popular Indian beer brand, is facing an insolvency threat as Hindusthan National Glass and Industries Ltd (HNGIL) has issued a default notice to its parent company B9 Beverages Ltd. The glass manufacturer is seeking recovery of over ₹11 crore for unpaid dues. This comes after the company's founder, Ankur Jain, resigned amid ongoing financial difficulties.
Legal proceedings
HNGIL issued notice under Section 8 of IBC
HNGIL has served the notice under Section 8 of the Insolvency and Bankruptcy Code (IBC), a mandatory step before applying for initiation of Corporate Insolvency Resolution Process (CIRP).
The company alleged that B9 Beverages defaulted on payments for glass bottles manufactured against confirmed purchase orders but allegedly not lifted by them.
The total amount sought is ₹11.77 crore.
Corporate shifts
Founder resigned last month amid financial crisis
Last month, Ankur Jain stepped down from the board and all executive positions at B9 Beverages Ltd.
His family members also resigned after reaching an agreement with the company's lenders and investors. This marked the end of a long-standing financial crisis for the firm.
Currently, B9 Beverages has 10 days to pay up or prove any pre-existing dispute, failing which HNGIL may approach NCLT for initiation of CIRP against them under Section 9 of IBC provisions.
Company statement
We remain open to a resolution: HNGIL
HNGIL's Chief Strategy Officer Suraj Mehta confirmed that a demand notice under IBC has been issued to Bira 91.
He said, "Our position is set out in the notice and we remain open to a resolution."
The dispute involves over 51 lakh customized amber glass bottles of 650ml each, manufactured against three purchase orders placed by B9 Beverages in June and September 2024.
Future actions
Bottles made as per technical specifications, cannot be sold elsewhere
The bottles, which carry Bira 91's branding, were made to its technical specification. This means they cannot be sold to any other buyer.
The amount claimed by HNGIL includes ₹7.03 crore toward the value of manufactured goods and ₹1.12 crore toward storage charges accrued on the unlifted stock.
If B9 Beverages fails to repay the unpaid operational debt in full within 10 days from receipt of this letter, HNGIL may initiate CIRP against them.