Zomato Rejects Claims as Nona Lifestyle Files Insolvency Plea Over Rs. 1.64 Crore Unpaid Dues

Food delivery giant Zomato is currently involved in a legal dispute with Nona Lifestyle, a B2B apparel manufacturer, over alleged unpaid dues of ₹1.64 crore. The contention has led Nona Lifestyle to file an insolvency plea against Zomato, bringing the case before the NCLT.

Nona Lifestyle’s Insolvency Plea

Nona Lifestyle asserts that in 2023, Zomato placed multiple orders for rider uniforms, trousers, and merchandise, including apparel for the ICC World Cup 2023. The supplier claims that Zomato delayed payments and refused deliveries, citing storage issues at times. 

Additionally, Nona Lifestyle alleges that Zomato exerted undue pressure to secure discounts and declined to accept the remaining World Cup jerseys, labelling the campaign as "failed," despite the jerseys being custom-made and unsuitable for other clients.

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Zomato Denies Claims 

In response, Zomato has refuted these allegations, stating that Nona Lifestyle consistently missed agreed-upon delivery deadlines, resulting in penalties as stipulated in their contract. 

The company contends that these delays caused substantial reputational damage. Zomato maintains that it has settled payments for delivered jerseys after deducting penalties and adjusting for advance payments.

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Legal Proceeding at NCLT 

In October 2024, the insolvency plea was first heard; however, in November, it was rejected for non-prosecution. Later, Nona Lifestyle filed a petition to get it restored.

Advocate Tanu Singhal, who represented Nona Lifestyle, told NCLT during the most recent hearing that she was unable to attend the earlier proceedings because of a schedule conflict. 

Advocate Abhishek Anand, Zomato's attorney, vehemently fought the petition's restoration, claiming that the plea could not be upheld because of the ongoing disagreement about the unpaid sum.

The tribunal also questioned Singhal about her knowledge of Zomato's operations. She responded, “I use Zomato, I am, in fact a Gold member. However, this is a genuine case.” 

Given that there was an existing dispute over the facts and the alleged dues, the National Company Law Tribunal   urged Nona Lifestyle to provide clarification on its line of action. The case has been adjourned until April 3 for further consideration. 

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