Bira and Devyani International Resolve Dispute, Insolvency Plea Withdrawn

Bira and Devyani International Resolve Dispute, Insolvency Plea Withdrawn

Introduction

Devyani International, a listed company operating quick service restaurants such as KFC and Pizza Hut, has filed a plea to withdraw its insolvency petition against B9 Beverages Limited (Bira) from the National Company Law Tribunal (NCLT). The petition was pending over alleged unpaid dues of ₹1.09 crore.

Factual Background

Devyani International had initiated insolvency proceedings against Bira, alleging that the company failed to clear payments owed under brand alliance and supply agreements. The agreements were signed in October 2021 and covered promotion of the Bira brand and supply of products at several locations.

Procedural Background

The NCLT had been hearing the case, and final arguments had been concluded. However, the parties reached a settlement, and Devyani International filed a plea to withdraw the insolvency petition.

Contentions of Parties

• Devyani International: Devyani alleged that Bira failed to clear payments owed under the agreements, despite repeated reminders. A statutory notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, was issued, and Bira responded with a "frivolous reply".
• B9 Beverages (Bira): Bira did not contest the withdrawal plea, and the parties reached a settlement.

Reasoning and Analysis

The bench of Judicial Member B Venkat Balram Das and Technical Member Dr. Sanjeev Ranjan will consider the withdrawal plea on September 10, 2025. The settlement between the parties suggests that they have resolved their disputes amicably.

Implications

The withdrawal of the insolvency petition may have implications for the business relationships between Devyani International and Bira. However, three other insolvency petitions filed by different companies remain pending against Bira before the NCLT, New Delhi.

In this case Devyani International was represented by Mr. Satish Rai, Mr. Abhay Gupta, Mr. Lakshay Aggarwal and Mr. Yogesh Khandiya, Advocates of SR Legal. Meanwhile B9 Beverages was represented by Mr. Divjyot Singh and Mr. Nipun Dwivedi, Advocates.