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Uniform supplier takes Zomato to court over unpaid dues of Rs 1.64 crore
Nona Lifestyle said it fulfilled its obligation but Zomato consistently delayed payments and returned deliveries citing lack of storage space.
Zomato faces insolvency plea from uniform supplier
Apparel manufacturer company Nona Lifestyle, which designs clothes for delivery executives, has filed a case against the food delivery aggregator over nonpayment of the dues.
According to a report by Bar & Bench, the B2B apparel manufacturer moved to the company's court, the NCLT, to initiate a corporate insolvency resolution process against Zomato.
Nona Lifestyle has alleged that Zomato owes Rs 1.64 crore for the uniforms worn by its delivery partners.
Nona Lifestyle, in its plea, said Zomato placed multiple orders during the 2023 Cricket World Cup, to design rider t-shirts, trousers, and World Cup jerseys. Nona Lifestyle said it fulfilled its obligation but Zomato consistently delayed payments and returned deliveries citing lack of storage space. The apparel manufacturer alleged that Zomato threatened to force the company to offer jerseys at discounted rates.
However, Zomato has denied all claims and said that Nona Lifestyle had unilaterally changed the delivery schedules because which it suffered "substantial reputational and goodwill damage".
The food aggregator also claimed that it paid for the delivered jerseys but deducted penalties as per the contract.
The tribunal has urged advocate Tanu Singhal, who appeared for, Nona Lifestyle, to obtain instructions on what course of action the company would like to take. The case has been adjourned to April 3 for further consideration.
Shares of Zomato were up 5 percent at Rs 213.78 on Tuesday at 11:25 am.
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