National Corporate Tribunal (NCLT) Delhi on Thursday rejected a bankruptcy request from unified supplier Nona Lifestyle to food delivery giant Zomato, allegedly breached ₹1.64 million.
The court justified the petition to be rejected by the court for the error drafting and rejected the request of the operating creditor to allow it to recover.
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Business-to-business (B2B) apparel maker Nona Lifestyle is trying to initiate a corporate bankruptcy settlement process (CIRP) targeting Zomato, claiming that uniforms and merchandise, including the ICC World Cup 2023 World Cup clothing, are not paid.
According to Nona Lifestyle, Zomato placed multiple orders for rider uniforms, pants and World Cup jerseys in 2023, but later delayed payments and refused delivery, citing storage issues. Pleasant to detail specific purchase orders and accused Zomato of the actions resulting in financial losses.
Zomato allegedly ordered 32,724 rider T-shirts in its purchase order on July 18, 2023, generating five value invoices ₹1.647 million. Nona’s lifestyle delivered 11,210 T-shirts, Zomato admitted, but the remaining 21,500 people were not delivered due to payment disputes. Undelivered stocks still exist in Nona Lifestyle’s warehouse, which incurs storage costs.
Another order dated June 6, 2023, covering 35,000 T-shirts ₹5.145 million will expire on August 7, 2023. However, Nona’s lifestyle acknowledged a delay of 21 to 73 days and was sentenced to a penalty under Zomato’s agreement.
The supplier further claimed that Zomato put pressure on it through “threats and warnings” to provide discounts, and later refused to accept the remaining World Cup jerseys on the grounds of “a failed campaign.” Since the jersey is custom made, it cannot be resold.
Zomato denied the allegations, saying Nona’s lifestyle repeatedly missed delivery deadlines, triggering contract fines. It believes the delay caused “significant reputation and goodwill damage” and insists that it pays for delivered jerseys only after adjusting the fine and early payment.
