[849] Event handling in different components ($emit and $on)

I have a very simple use case. Emit an event in one component and listen to that event in another component. In component1's methods block, I am using this piece of code

this.$emit('deletedchip')

In component2's mounted block, I am using this piece of code

this.$on('deletedchip', function(){
//Do something
}) 

Event is being emitted but the listener part in component2 is not working. Is there any specific way of dealing this in nuxtjs ?