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Why Zomato Is Facing Insolvency Plea? Story Behind The Unpaid Dues

Nona Lifestyle has sought the NCLT to begin the corporate insolvency resolution process against Deepinder Goyal-led Zomato because the food delivery company has allegedly not paid for uniforms supplied to its delivery partners and other apparel

Deepinder Goyal-led Zomato Is Facing Insolvency Plea

Uniform supplier Nona Lifestyle on Monday filed an insolvency plea against food delivery giant Zomato over unpaid dues amounting to Rs 1.64 crore, Bar and Bench reported. While the National Company Law Tribunal (NCLT) adjourned the matter to April 3, the tribunal requested the petitioner to clarify its next steps.

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The B2B apparel manufacturer, in the petition, has sought the NCLT to begin the corporate insolvency resolution process against Deepinder Goyal-led Zomato because the food delivery company has allegedly not paid for uniforms supplied to its delivery partners and other apparel, including for the ICC World Cup 2023.

Zomato-Nona Lifestyle Dispute

The story started in 2023 when Zomato placed multiple orders with Nona Lifestyle for rider uniforms, World Cup jerseys, and trousers. The supplier claims that it has fulfilled all contractual obligations like manufacturing and delivering the ordered items.

However, Zomato delayed payments and refused to accept uniform deliveries, the apparel company alleged. Not only this, Nona Lifestyle claimed that Zomato also didn’t accept the deliveries of remaining World Cup jerseys and termed it a “failed” campaign. The jerseys were customised as per Zomato’s requirement and were not suitable for other use.

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The list of allegations seems longer. The apparel company added that the food delivery giant even “threatened and warned” Nona Lifestyle for offering discounts.

Zomato’s Response

After Nona Lifestyle approached NCLT, Zomato denied the allegations and asserted that the fashion company consistently failed to meet delivery timelines which led to penalties as per their contract. “The delays caused substantial reputational and goodwill damage,” Zomato claimed.

The food aggregator clarified that the company made payments for “delivered” jerseys after adjusting the advance amount and deducting penalties.

Insolvency Plea Revival

The insolvency case hearing took place in October 2024. However, the plea was dismissed for non-prosecution in November. Later, Nona Lifestyle again moved the petition for its restoration. Nona Lifestyle’s counsel advocate Tanu Singhal, during the latest hearing, told NCLT that she was not able to attend the previous proceedings.

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However, Zomato’s counsel advocate Abhishek Anand opposed the petition restoration and argued that it was not maintainable due to an ongoing dispute over the unpaid dues. “I use Zomato. In fact, I am a Gold member. This is a genuine case,” she said.

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