Indian spirits group House of Khodays has terminated its long-term distribution agreement with bottler Bagga Millennium Liquor India.

Reasons for the end of the deal have not been disclosed but the sudden termination is expected to result in a legal battle between the two companies. Bagga Millennium Liquor India has already claimed INR450m (US$10m) from Khodays after the contract was ended.

Small, traditional liquor manufacturers in India often enter into distribution arrangements with spirits distributors. Recently, Mohan Meakin signed a distribution and bottling pact with distributors Mason & Summers.

Bagga Millennium has been credited with the resurrection of Khodays as an independent spirits manufacturer with popular brands like Peter Scot Whisky, Democrat Whiskey and Hercules Rum.