United Spirits Limited (USL) has suffered a setback in its ₹1,337 crore loan dispute with the Official Liquidator of United Breweries (Holdings) Limited, as the 47th Additional City, Civil & Sessions Judge, Bengaluru (Commercial Court) upheld an arbitration award against the company. The court dismissed USL’s claim, which sought repayment of the consolidated loan, initially given under a 2013 agreement.
Case Background
USL had provided a consolidated loan of ₹1,337 crore at 9.5% annual interest to United Breweries (Holdings) Limited in 2013. After the latter defaulted on interest payments in 2015, USL recalled the loan and initiated arbitration. However, the Arbitral Tribunal rejected USL’s claim as premature, leading the company to challenge the ruling in court.
On March 3, 2025, the Bengaluru Commercial Court upheld the arbitration award, dismissing USL’s appeal. The company received the certified judgment copy on March 5, 2025, following which it conducted an internal assessment before making the disclosure.
Financial and Operational Impact
While the court ruling is a setback, USL has stated that it does not pose immediate financial implications since it was a claim for receivables. The company plans to appeal against the decision, seeking further legal remedies.
