Zomato faces insolvency plea over alleged Rs 1.64 crore unpaid dues

Meals supply large Zomato is dealing with an insolvency plea from uniform provider 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 make clear its subsequent steps.

Based on the report, B2B apparel manufacturer Nona Life-style has approached the NCLT to provoke the company insolvency decision course of (CIRP) towards Zomato over alleged non-payment for provided uniforms and merchandise, together with ICC World Cup 2023 apparel.

Claims of unpaid dues

Nona Life-style claimed that Zomato positioned a number of orders in 2023 for rider uniforms, trousers, and World Cup jerseys. Zomato is accused of delaying funds, and refusing deliveries citing storage points.

The corporate additionally alleged that the meals supply main used “threats and warnings” to strain it into providing reductions and actually refused to just accept the remaining World Cup jerseys, citing a “failed” marketing campaign, regardless of the jerseys being custom-made and unsuitable for different use.

Zomato denies allegations

Zomato has rejected these claims, stating that Nona Life-style repeatedly missed agreed-upon supply deadlines, leading to penalties as per their contract.Zomato argued that the delays brought about “substantial reputational and goodwill injury” and said that it solely paid for delivered jerseys after deducting penalties and adjusting the advance fee.