Zomato faces an insolvency plea from Nona Lifestyle over alleged unpaid dues of Rs 1.64 crore. The NCLT has adjourned the case to April 3 for further clarification. Zomato has rejected these claims, stating that Nona Lifestyle repeatedly missed agreed-upon delivery deadlines, resulting in penalties as per their contract.
Food delivery giant Zomato is facing an insolvency plea from uniform supplier Nona Lifestyle, alleging unpaid dues of Rs 1.64 crore, as reported by Bar and Bench on March 17.
The National Company Law Tribunal (NCLT) has adjourned the case to April 3, requesting the petitioner to clarify its next steps.
According to the report, B2B apparel manufacturer Nona Lifestyle has approached the NCLT to initiate the corporate insolvency resolution process (CIRP) against Zomato over alleged non-payment for supplied uniforms and merchandise, including ICC World Cup 2023 apparel.
Claims of unpaid dues
Nona Lifestyle claimed that Zomato placed multiple orders in 2023 for rider uniforms, trousers, and World Cup jerseys. Zomato is accused of delaying payments, and refusing deliveries citing storage issues.
The company also alleged that the food delivery major used “threats and warnings” to pressure it into offering discounts and in fact refused to accept the remaining World Cup jerseys, citing a “failed” campaign, despite the jerseys being custom-made and unsuitable for other use.
Zomato denies allegations
Zomato has rejected these claims, stating that Nona Lifestyle repeatedly missed agreed-upon delivery deadlines, resulting in penalties as per their contract.
Zomato argued that the delays caused “substantial reputational and goodwill damage” and stated that it only paid for delivered jerseys after deducting penalties and adjusting the advance payment.
