The National Company Law Tribunal (NCLT) Delhi on Thursday dismissed an insolvency plea filed against food delivery giant Zomato by uniform supplier Nona Lifestyle over an alleged payment default of ₹1.64 crore.
The tribunal rejected the petition on maintainability grounds, citing drafting errors, and refused the operational creditor’s request to allow its restoration.
Business-to-business (B2B) apparel manufacturer Nona Lifestyle sought to initiate a Corporate Insolvency Resolution Process (CIRP) against Zomato, claiming non-payment for uniforms and merchandise, including ICC World Cup 2023 apparel.
According to Nona Lifestyle, Zomato placed multiple orders in 2023 for rider uniforms, trousers, and World Cup jerseys but later delayed payments and refused deliveries, citing storage issues. The plea detailed specific purchase orders and alleged that Zomato’s actions led to financial losses.
In a purchase order dated 18 July 2023, Zomato allegedly ordered 32,724 rider t-shirts, generating five invoices worth ₹16.47 lakh. Nona Lifestyle delivered 11,210 t-shirts, which Zomato acknowledged, but the remaining 21,500 were not delivered due to payment disputes. The undelivered stock remains in Nona Lifestyle’s warehouse, incurring storage costs.
Another order, dated 6 June 2023, covered 35,000 t-shirts valued at ₹51.45 lakh, with delivery due by 7 August 2023. However, Nona Lifestyle admitted to delays of 21 to 73 days, attracting penalties under Zomato’s agreement.
The supplier further alleged that Zomato pressured it into offering discounts through “threats and warnings” and later refused to accept remaining World Cup jerseys, citing a “failed campaign.” Since the jerseys were custom-made, they could not be resold.
Zomato denied the allegations, stating that Nona Lifestyle repeatedly missed delivery deadlines, triggering contractual penalties. It argued that the delays caused “substantial reputational and goodwill damage” and maintained that it only paid for delivered jerseys after adjusting penalties and advance payments.
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