The National Company Law Tribunal (NCLT) has declined to initiate insolvency proceedings against Zomato, as per media reports.
This comes after a legal dispute over alleged unpaid dues of Rs 1.64 crore filed by Nona Lifestyle, a B2B apparel manufacturer.
Nona Lifestyle had accused Zomato of failing to pay for rider uniforms and merchandise, which included jerseys designed for the ICC World Cup 2023.
According to Nona Lifestyle, the company had fulfilled its contractual obligations but faced delays in payments, refusals of delivery due to storage concerns, and increasing pressure from Zomato to provide discounts.
However, Zomato denied the allegations, asserting that all payments for the supplied uniforms were made within the agreed timeframe.
The company countered by claiming that Nona Lifestyle missed delivery deadlines, leading to the imposition of contractual penalties, the report added.
Zomato further explained that payments for the delivered jerseys were made after necessary deductions.
The insolvency petition, which was initially dismissed for non-prosecution in November 2024, was revived at the request of Nona Lifestyle. Despite the reviewed petition, the NCLT ruled in favour of Zomato, rejecting the move to initiate insolvency proceedings.