NCLT Orders Mediation in B9 Beverages (Bira 91) Insolvency Proceedings
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TL;DR
- NCLT ordered B9 Beverages and creditors into mediation over insolvency matters.
- Settlement discussions involve external financiers and multiple bank creditors.
- Strict asset protection measures imposed during mediation.
- Ongoing opposition from some creditors regarding terms and procedural delays.
Overview
On September 15, 2026, the National Company Law Tribunal (NCLT) in New Delhi ordered B9 Beverages Limited, the parent company of craft beer brand Bira 91, and its creditors to engage in mediation to try to settle ongoing insolvency proceedings. The Tribunal's order follows several months of pending admission for insolvency applications, most notably a Section 7 petition from Unity Small Finance Bank.
What Happened
The NCLT's special bench ordered B9 Beverages and its creditors to participate in mediation to explore a settlement of insolvency claims.
The tribunal's action came during hearings on multiple creditor petitions, including a Section 7 application from Unity Small Finance Bank.
A mediator was appointed and a settlement meeting scheduled with all parties, including promoters, financiers, and creditor representatives.
External financiers indicated willingness to inject capital to revive B9 Beverages, but some creditors, including Unity Small Finance Bank, objected to proposed payment terms and raised concerns about possible asset siphoning.
The NCLT mandated that B9 Beverages must not dispose of any assets during the mediation period and required financiers to create a full asset inventory. The court rejected an updated shareholding chart as irrelevant and warned the company against further delays if mediation fails.
Context
B9 Beverages Limited, known for its Bira 91 beverage line, has faced insolvency petitions from several creditors, notably Unity Small Finance Bank.
The dispute has seen lengthy procedural delays (over 10 months) prior to the mediation order, with concerns raised about attempts to resolve the matter outside formal insolvency proceedings.
Why It Matters
- The proceedings may set a precedent for court-mandated mediation in high-profile insolvency cases in India.
- Asset freeze measures highlight NCLT's approach to safeguarding creditors during mediation.
- The case tests the feasibility of settlement through external financing in ongoing insolvency disputes.