Zomato has secured a legal victory as the National Company Law Tribunal (NCLT) rejected an insolvency plea filed against the food delivery giant. The case, brought by B2B apparel manufacturer Nona Lifestyle, was dismissed on procedural grounds, marking the end of the firm’s bid to initiate corporate insolvency proceedings over alleged unpaid dues.
Nona Lifestyle had previously partnered with Zomato to supply uniforms for its employees and delivery partners, including custom apparel for the ICC World Cup 2023. According to the petition, Zomato placed multiple orders for items such as rider t-shirts, trousers, and World Cup jerseys, but allegedly delayed payments and refused to take delivery of a large portion of the stock. The apparel company also accused Zomato of using threats and coercion to force price reductions.
Zomato, however, countered that Nona Lifestyle had repeatedly failed to meet delivery deadlines, causing disruptions that ultimately led to financial and reputational losses. The food delivery platform argued that the insolvency plea was itself flawed, as Nona Lifestyle had failed to issue a proper legal notice under the Insolvency and Bankruptcy Code.
The tribunal agreed with Zomato’s position, ruling that the necessary notice requirements had not been met, making the plea legally unsustainable. With this technical lapse sealing the case, Nona Lifestyle’s efforts to revive the proceedings were dismissed outright.
