Devyani International decided to withdraw its insolvency case against Bira Beer’s parent company B9 Beverages after both sides reached a settlement. The case, involving alleged unpaid dues of Rs 1.09 crore, was being heard before NCLT Delhi.
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NEW DELHI: Devyani International Limited, the company that runs popular fast-food brands like KFC and Pizza Hut in India, has moved to withdraw its insolvency petition against B9 Beverages Limited, the maker of Bira beer.
The petition was filed before the National Company Law Tribunal (NCLT), New Delhi, in connection with alleged unpaid dues amounting to Rs 1.09 crore.
This decision comes after both companies reached a settlement once the final stage of hearings in the matter was completed.
The case was being heard by a Bench of NCLT consisting of Judicial Member B Venkat Balram Das and Technical Member Dr. Sanjeev Ranjan. The tribunal has now listed the matter on 10 September to consider Devyani’s request to formally withdraw the insolvency proceedings.
The dispute dates back to agreements signed between Devyani International and B9 Beverages starting from October 2021. These contracts were related to brand promotion and supply of Bira products at different outlets, including major airports such as Lucknow’s Chaudhary Charan Singh International Airport and New Delhi’s Indira Gandhi International Airport.
In addition to Devyani International, its group companies—Devyani Food Spirit Private Limited and Devyani Airport Services Mumbai Private Limited—also entered into arrangements with Bira for supplying products at various locations. In March 2023, the scope of these contracts was further extended through additional agreements.
According to Devyani, Bira had committed to making payments within ten days of the end of each financial quarter. However, default allegedly began from the first quarter of FY 2023–24. Despite repeated reminders, the invoices raised after June 29, 2023, remained unpaid.
This led Devyani to serve a statutory notice under Section 8 of the Insolvency and Bankruptcy Code, 2016. Devyani claimed that Bira’s reply to the notice, sent on 27 September 2024, was “frivolous” and failed to resolve the outstanding dues, which prompted the company to approach NCLT with an insolvency petition.
While Devyani has now opted for settlement and withdrawal of its petition, B9 Beverages continues to face legal challenges. At least three other insolvency petitions filed by different companies are still pending against the beer maker before the NCLT, New Delhi.
Explanatory Table of Laws & Sections Mentioned
| Law / Code | Section | Explanation in Simple Terms | Relevance in This Case |
|---|---|---|---|
| Insolvency and Bankruptcy Code, 2016 (IBC) | Section 7 (not directly mentioned but often relevant in insolvency petitions) | Allows financial creditors to file insolvency petitions against a defaulting company before NCLT. | Companies like Devyani generally use this to initiate insolvency against a debtor. |
| Insolvency and Bankruptcy Code, 2016 (IBC) | Section 9 (likely applicable) | Allows operational creditors (like suppliers, service providers) to file insolvency petitions if payments are not cleared. | Devyani filed as an operational creditor since its claim was about unpaid invoices for supply & brand promotion. |
| Insolvency and Bankruptcy Code, 2016 (IBC) | Section 8 | Requires an operational creditor to first send a demand notice to the defaulting company, asking for payment. If the reply is not satisfactory or payment is not made, the creditor can move to NCLT under Section 9. | Devyani sent a statutory notice under Section 8 to Bira. Bira’s reply was termed “frivolous,” leading Devyani to file the insolvency plea. |
| National Company Law Tribunal (NCLT) | NCLT Procedure Rules | NCLT is the forum where insolvency petitions are filed and heard. It has judicial and technical members who adjudicate such cases. | The case was heard by an NCLT Bench in New Delhi comprising Judicial Member B Venkat Balram Das and Technical Member Dr. Sanjeev Ranjan. |
| Contract Law Principles | (No specific section cited, but Indian Contract Act, 1872 applies) | Contracts are binding agreements enforceable by law. Non-payment of dues after agreed timelines amounts to breach of contract. | The dispute arose from brand alliance and supply agreements signed between Devyani and B9 Beverages from 2021 onwards, extended in 2023. |
- Devyani International was represented by a legal team comprising Advocates Satish Rai, Abhay Gupta, Lakshay Aggarwal, and Yogesh Khandiya from SR Legal.
- B9 Beverages Limited was represented by Advocates Divjyot Singh and Nipun Dwivedi.
CASE TITLE:
Devyani International v. B9 Beverages.
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