NCLT Dismisses Insolvency Plea Against Zomato Over World Cup Uniform Dispute

The National Company Law Tribunal (NCLT) has dismissed an insolvency plea filed by Nona Lifestyle against Zomato on the grounds of non-maintainability.

Nona had claimed delayed payments and return deliveries by Zomato, in relation to their partnership to supply ICC World Cup 2023-themed uniforms for Zomato’s staff and delivery partners. Zomato countered that Nona failed to meet delivery deadlines.

The NCLT ruled that Nona did not serve a valid notice under Section 8 of the IBC, which is a mandatory procedural requirement, rendering the petition invalid.

It emphasized that an operational creditor has a bound obligation to serve notice in the prescribed manner.