HNGIL initiates insolvency action against Bira 91 maker over US$1.2M default
The dispute centres on more than 51 lakh customised beer bottles that remain in storage after B9 Beverages allegedly failed to make payment and collect the stock.
INDIA – Hindusthan National Glass and Industries Ltd (HNGIL) has initiated insolvency proceedings against B9 Beverages Ltd, the maker of Bira 91 beer, by issuing a demand notice over an alleged payment default of Rs 11.77 crore (US$1.24M).
The glass manufacturer issued the notice under Section 8 of the Insolvency and Bankruptcy Code (IBC), before a possible application to the National Company Law Tribunal (NCLT) for the Corporate Insolvency Resolution Process (CIRP).
HNGIL, an operational creditor of B9 Beverages, alleged that the brewer failed to pay for customised glass bottles manufactured against confirmed purchase orders. The dispute concerns more than 51 lakh 650 ml amber bottles produced specifically for Bira 91.
The bottles were ordered through three purchase orders in June and September 2024. They remain stored at HNGIL facilities in Bahadurgarh, Haryana, Puducherry and Rishra, West Bengal.
According to HNGIL’s demand notice, the bottles carry B9 Beverages’ branding and were manufactured according to the brewer’s technical specifications. HNGIL said the customised inventory therefore cannot readily be sold to another buyer.
The Rs 11.77 crore (US$1.24M) claim includes Rs 7.03 crore for the manufactured bottles and Rs 1.12 crore in storage charges. HNGIL has also sought contractual interest, after accounting for a credit balance of Rs 13.72 lakh in B9 Beverages’ account.
The demand notice follows a legal notice issued by HNGIL on May 6, 2026. The company asked B9 Beverages to settle the outstanding amount and provide a plan to collect the stock within 15 days. HNGIL said neither payment nor a schedule for lifting the bottles was provided.
HNGIL Chief Strategy Officer Suraj Mehta said the company issued the IBC demand notice after the earlier legal notice concerning commercial and contractual matters. He said HNGIL remained open to resolving the dispute but declined further comment because the matter was under legal consideration.
B9 Beverages has 10 days from receiving the demand notice to make the payment or formally raise a pre-existing dispute. If the default is not addressed, HNGIL may approach the NCLT under Section 9 of the IBC seeking commencement of insolvency proceedings.
HNGIL said the uncollected inventory had increased warehousing costs, tied up working capital and affected business opportunities because manufacturing capacity remained occupied. The company also described the situation as strain.
The development comes as B9 Beverages addresses its financial difficulties. Bira 91 has been out of production since September 2025, while the company’s debt is estimated at around Rs 1,000 crore.
Last month, founder Ankur Jain left the board and all executive roles at B9 Beverages, and members of his family, after reaching a settlement with lenders and investors.
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