HNGIL Serves IBC Default Notice to Bira 91 Maker B9 Beverages Over ₹11.77 Crore Dues

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 initiate insolvency proceedings at the National Company Law Tribunal (NCLT).

HNGIL, a container glass manufacturer, issued the notice under Section 8 of the Insolvency and Bankruptcy Code (IBC). This is a mandatory step before filing an application for the commencement of the Corporate Insolvency Resolution Process (CIRP). Operating as an operational creditor, HNGIL claimed a default in payments and sought the recovery of ₹11.77 crore for glass bottles that were manufactured against confirmed purchase orders but allegedly not lifted by B9 Beverages.

According to the provisions of the IBC, B9 Beverages has ten days from the receipt of the notice to clear the payment or place on record any pre-existing dispute. Failing this, HNGIL may move the NCLT to initiate a corporate insolvency resolution process under Section 9 of the Code.

Suraj Mehta, Chief Strategy Officer at HNGIL, stated that the company acknowledges the issuance of the demand notice following an earlier legal notice concerning commercial and contractual issues. He added that HNGIL remains open to a resolution, but noted that further comments are restricted due to the matter being under legal consideration.

The dispute centers on more than 51 lakh customized amber glass bottles of 650 ml. These were manufactured against three purchase orders placed by B9 Beverages in June and September 2024. The stock remains at HNGIL plants in Bahadurgarh (Haryana), Puducherry, and Rishra (West Bengal). Because the bottles carry the brewer's specific branding and technical specifications, they cannot be sold to alternative buyers.

The claimed amount consists of ₹7.03 crore for the value of the manufactured goods, ₹1.12 crore for accrued storage charges, and interest on both heads at contractual rates, after adjusting a credit of ₹13.72 lakh standing to the account of B9 Beverages. This follows an earlier legal notice issued on May 6, 2026, which requested the clearance of dues and a firm schedule for lifting the stock within 15 days.

HNGIL's counsel, Nyaayam Associates LLP, stated that neither payment nor a stock-lifting schedule was provided. The operational creditor noted that the failure to lift the goods caused severe financial hardship, including blocked working capital, additional warehousing expenses, and lost business opportunities due to tied-up capacity.

B9 Beverages has faced significant financial distress, remaining out of production since September 2025 with an estimated debt burden of around ₹1,000 crore. Last month, founder Ankur Jain and his family members stepped down from the board and executive positions at the parent company after settling with lenders and investors.

Alternative investment firm Anicut Capital, holding a lien on shares, is reportedly leading the restructuring process alongside existing shareholders Peak XV Partners and Kirin Holdings. The proposed recapitalization aims to clear statutory liabilities, employee dues, and vendor payments before resuming operations. Additionally, reports indicate that multiple entities, including Varun Beverages' new step-down subsidiary KIVA Spirits, are evaluating the acquisition of B9 Beverages.

"This development underscores the critical operational risks startups face when supply chain commitments break down during financial distress. For operational creditors, the IBC provides a structured mechanism to recover dues, but inventory lock-in of customized goods creates severe working capital bottlenecks. As B9 Beverages navigates its broader restructuring and debt resolution, resolving vendor liabilities will be a vital step for any incoming acquirer to restore manufacturing operations." — Dr. Shishir Gupta, Founder & CEO, StartupLanes