Hindusthan National Glass and Industries (HNGIL) has issued a default notice to B9 Beverages under Section 8 of the Insolvency and Bankruptcy Code for alleged unpaid dues of ₹11.77 crore, PTI reported today. HNGIL is an operational creditor of B9 Beverages, it added.
This is a mandatory step before filing an application for commencement of the Corporate Insolvency Resolution Process () and comes as the container glass manufacturer seeks to drag the debt-ridden brewer of the Bira 91 beer brand to the National Company Law Tribunal (NCLT), it added.
What has HNGIL claimed in its default notice?
in its notice claimed default in payments and sought recovery of ₹11.77 crore for glass bottles manufactured against confirmed purchase orders but allegedly not lifted by B9 Beverages.
As per IBC rules, B9 has 10 days from receipt of the notice to pay the amount or to place on record any pre-existing dispute, the report said, adding that failure to do so would allow HNGIL to move the to initiate a corporate insolvency resolution process under Section 9 of the IBC.
“We acknowledge that a demand notice under the IBC has been issued to , 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.
HNGIL vs B9 Beverages: What is the dispute?
As per the report, the dispute with regard to over 51 lakh customised 650 ml amber glass bottles that manufactured for B9 against three purchase orders placed in June and September 2024. However, the stock was not picked and is lying at the plants at Bahadurgarh in Haryana, Puducherry, and Rishra in West Bengal, it said.
The issue arises because the bottles carry ‘ own branding and were made to fit the required technical specifications, which means they cannot be sold to any other buyer, it added.
The claimed amount comprises ₹7.03 crore towards the value of manufactured goods, ₹1.12 crore towards storage charges accrued on the unlifted stock and interest on both heads at the contractual rate, after adjusting a credit of ₹13.72 lakh standing to the account of B9 Beverages, as mentioned in the notice.
Prior to the demand notice, HNGIL had sent B9 a legal notice on 6 May asking the company to clear dues and provide a confirmed schedule for picking the within 15 days. The manufacturer added that neither payment nor stock schedule was given.
Both notices were issued through the company’s counsel, Nyaayam Associates LLP.
Why the demand notice?
As per the report, IBC Section 8 allows an operational creditor, being a party-owed money for goods supplied or services rendered, to formally demand that unpaid debt be cleared by a company, before the creditor approaches the .
The statement added that since the bottles were manufactured specifically for B9, they and are not readily marketable to third parties. It further alleged that the brewer’s failure to lift the goods had caused “severe prejudice and financial hardship” to HNGIL, including additional warehousing expenses, blockage of working capital and loss of business opportunities due to tied-up capacity.
HNGIL’s notice is seeking that B9 “unconditionally repay the unpaid operational (in default) in full within 10 days from the receipt of this letter”, failing which it would initiate CIRP against the company.
B9 Beverages: What is the status of Bira 91 beer maker?
Bira 91 Founder stepped down from the company board in July and all executive positions at parent company B9 Beverages. Members of his family did the same after settling with lenders and investors, bringing to an end a prolonged financial crisis at the firm.
B9 Beverages, which sells beer under the , has been out of production since September 2025 and is estimated to be carrying debt of around ₹1,000 crore, as per the report.
Alternative investment firm Anicut Capital, which held a lien on those 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.
According to some reports, several companies, including — the bottling partner of beverages giant PepsiCo in India and some other countries — which formed a new step-down subsidiary, KIVA Spirits, are in the race to acquire B9 Beverages.
(With inputs from PTI)