Zomato shares jump 6% despite the firm’s insolvency plea reports; check details

Nona Lifestyle Pvt Ltd, an operational creditor, has moved NCLT requesting to restore an insolvency plea filed by it earlier against Zomato Ltd under Section 9 of the Insolvency & Bankruptcy Code in 2024.

However, market investors were not impacted following this development. At 12:14 PM, shares of Zomato were trading 4.77% higher at ₹213.41 apiece on the National Stock Exchange. Its market capitalisation stood at ₹775.23 crore.

In 2024, NCLT had dismissed it due to non-prosecution, and now Nona Lifestyle has requested to restore its old petition.

It has filed an application under Rule 11 of the NCLT Rules, 2016, which provides the tribunal inherent power that can also be used for restoration purposes.

It has requested the Delhi-based NCLT bench "to admit the accompanying application and pass an order for initiating the CIRP against the corporate debtor (Zomato) here under Section 9".

CIRP stands for Corporate Insolvency Resolution Process.

The matter was listed on Monday before a two-member bench of the NCLT, comprising members Ashok K Bhardwaj and Reena Sinha Puri, which adjourned the matter to April.

Nona Lifestyle, the petitioner, is an apparel business and has supplied uniforms for its employees and delivery partners, including merchandise for brand activations during ICC World Cup 2023.

It has claimed default on the part of Zomato, saying it not only delayed the payment but also did not take the complete delivery.

Nona Lifestyle has claimed dues of ₹1.64 crore, including interest, on Zomato. However, it was denied by the counsel appearing for the food delivery aggregator.

Zomato's counsel opposed the restoration of the plea and said there is a pre-existing dispute.

Meanwhile, Zomato Ltd will join the NIFTY50 index from March 28, 2025. In December 2024, Zomato became the first new-age company to join the benchmark BSE index SENSEX, replacing JSW Steel.