Case Overview

This order pertains to two interconnected applications:

1. C.P (IB) No. 99/KB/2022: A company petition filed by United Breweries Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Celebrity Breweries Private Limited (Corporate Debtor) to initiate a Corporate Insolvency Resolution Process (CIRP).

2. I.A (IB) No. 1414/KB/2023: An application filed by the Corporate Debtor (Celebrity Breweries) against the Operational Creditor (United Breweries) seeking a counterclaim of ₹10,34,74,016.

The dispute arose from brewing and distribution agreements dated 03.05.2018, 15.05.2019, and 07.11.2020. Under these agreements, the Corporate Debtor was permitted to brew and bottle beer using the Operational Creditor's know-how and intellectual properties. The Operational Creditor claimed an outstanding operational debt of ₹11,17,72,417.92. This amount was derived from a previously admitted debt of ₹12,90,78,378.92, which was then adjusted by crediting ₹1,23,05,961.25 (for service charges) and ₹50,00,000 (refund of security deposit). The debt was primarily constituted by an advance of ₹10,76,49,598 and an additional ₹41,22,820 payable for freight to transporters.

The Corporate Debtor had admitted its liability multiple times. A balance confirmation certificate dated 25.01.2021 showed an admission of ₹31,61,74,140.31. Subsequently, emails dated 03.05.2021 and 13.05.2021 admitted a reconciled debt of ₹12,90,78,378.92 and proposed a 6-month instalment plan. The demand notice under Section 8 of the IBC was served on 26.10.2021, which the Corporate Debtor denied on 09.11.2021. The Corporate Debtor's main defense was that the amount was disputed and not crystallized, and it filed a counterclaim for ₹10,34,74,016.

The Tribunal analyzed the submissions against the triple test laid down by the Supreme Court in Mobilox Innovations for admitting a Section 9 application: existence of an operational debt over ₹1 lakh, documentary evidence showing it is due and payable, and the absence of a pre-existing dispute. The Tribunal found the debt and default were established through the Corporate Debtor's own admissions and documentation. Regarding the counterclaim in I.A. No. 1414/KB/2023, the Tribunal noted the Corporate Debtor failed to annex any documents to support its claim of ₹10.34 crore. It further held that even if the counterclaim amount was set off, the remaining debt payable to the Operational Creditor would still be above the threshold limit for initiating CIRP under Section 4 of the IBC.

Final Outcome

1. I.A (IB) No. 1414/KB/2023 filed by Celebrity Breweries Pvt. Ltd. is dismissed.

2. C.P (IB) No. 99/KB/2022 filed by United Breweries Ltd. is admitted.

3. The Corporate Insolvency Resolution Process (CIRP) is initiated against Celebrity Breweries Private Limited (Corporate Debtor).

4. A moratorium under Section 14 of the IBC is declared with immediate effect, prohibiting suits, transfers of assets, enforcement of security interest, and recovery of property against the Corporate Debtor.

5. Ms. Soumitra Lahiri (Registration No. IBBI/IPA-001/IP-P-00734/2017-2018/11232) is appointed as the Interim Resolution Professional (IRP).

6. The IRP is directed to make a public announcement immediately to call for claims. The management of the Corporate Debtor is vested in the IRP.

7. The financial creditors are directed to pay an advance fee of ₹3,00,000 to the IRP.

8. The matter is listed next on 17.07.2026 for filing a periodical progress report by the IRP.

Topics: Corporate Insolvency, Operational Debt, NCLT Order