The National Company Law Tribunal (NCLT) recently completed hearing an insolvency petition filed by Devyani International against B9 Beverages Limited, the maker of Bira beer. The dispute revolves around unpaid dues amounting to ₹1.09 crore. A bench comprising Judicial Member B. Venkat Balram Das and Technical Member Atul Chaturvedi has now set March 7 as the date for compliance.  

1. Devyani International – A Key Player in the QSR Industry 
Devyani International is a publicly listed company operating multiple quick-service restaurant (QSR) brands, including KFC and Pizza Hut, across India. The company entered into business agreements with B9 Beverages with the objective of expanding brand reach and strengthening market presence.  

2. Business Agreement Between Bira and Devyani
The relationship between Devyani International and B9 Beverages began on October 1, 2021, when B9 sought to enhance its market standing and approached Devyani for collaboration. This led to the execution of multiple agreements, including:  

3. Brand Alliance Agreement – Designed to boost brand visibility and strengthen market growth.  
Supply Agreements – B9 committed to supplying products to different locations, such as Ile Bar at Lucknow’s CCS Airport and Indira Gandhi International Airport, New Delhi.  

4. Sister Concern Agreements – Devyani’s subsidiaries, Devyani Food Spirit Private Limited (DFSPL) and Devyani Airport Services Mumbai Private Limited (DASMPL), also entered into agreements for product supply at various airport outlets.  

On March 14, 2023, an addendum was added to the brand alliance agreement and the supply agreement with DFSPL, further defining their business engagement.  

5. Payment Dispute and Alleged Default  
Despite fulfilling its contractual commitments, Devyani International claims that B9 Beverages did not meet its financial obligations. As per the agreements, B9 was required to clear payments within ten days after each quarter ended. However, starting in the first quarter of the 2023-2024 financial year, B9 allegedly defaulted on its payments. Despite repeated reminders, no payments were made against invoices issued from June 29, 2023, onward.  

6. Legal Action Under Insolvency and Bankruptcy Code (IBC) 
After multiple unsuccessful attempts to recover the dues, Devyani International issued a formal notice under Section 8 of the Insolvency and Bankruptcy Code (IBC), 2016. In response, B9 Beverages allegedly submitted a reply on September 27, 2024, which Devyani deemed frivolous and lacking a valid resolution to the payment issue. As a result, Devyani moved forward with legal proceedings to initiate the Corporate Insolvency Resolution Process (CIRP) against B9.  

7. Legal Representation and Tribunal Proceedings
Devyani International is being represented in the case by Advocates Satish Rai, Abhay Gupta, Lakshay Aggarwal, and Yogesh Khandiya from SR Legal. On the other hand, B9 Beverages has legal representation from Advocates Divjyot Singh and Nipun Dwivedi. The next step in the proceedings will be the compliance review scheduled for March 7.