G Ramesh had moved the District Consumer Redressal Forum, Chennai North, alleging that he found the insect in the bottle, which he had purchased from a state-run outlet.
The salesman at the outlet refused to provide a bill next day when Ramesh took up the matter with him, following which he filed a police complaint.
He later issued a legal notice to United Spirits Limited (USL), the manufacturer but since there was no relief, he moved the consumer forum.
It also challenged the complainant's claim of health issues since he had not consumed the brandy.
The consumer forum headed by president V Gopal said it was not clear how an insect could have got inside a sealed bottle.
It also said any person, who could have consumed the liquor, would have suffered health hazards.