Zomato Faces Insolvency Plea Amid Payment Dispute

Zomato is facing an insolvency plea as operational creditor Nona Lifestyle seeks to restore a dismissed petition at the National Company Law Tribunal. The petition claims Zomato defaulted on payments for apparel supplied during 2023, while Zomato argues there's a pre-existing dispute.

Food delivery giant Zomato is once again in legal hot water, with a fresh insolvency plea looming. Nona Lifestyle Pvt Ltd, an operational creditor, is pushing to revive a petition previously dismissed by the National Company Law Tribunal (NCLT), alleging Zomato's default under the Insolvency & Bankruptcy Code.

The original plea was dismissed in 2024 due to non-prosecution, but Nona Lifestyle now seeks restoration through an application under Rule 11 of the NCLT Rules, 2016. The case, which centers around unpaid dues for uniforms and merchandise connected to the ICC World Cup 2023, accuses Zomato of significant payment delays.

Zomato's legal team counters the insolvency claim, highlighting a pre-existing dispute over the dues totaling Rs 1.64 crore, including interest. Meanwhile, the two-member NCLT bench has postponed proceedings until April, leaving the fate of Zomato's financial liability hanging in the balance.

(With inputs from agencies.)