New Delhi: In a relief to Polycab India Ltd, the National Company Law Appellate Tribunal (NCLAT) on Friday set aside insolvency proceedings against the wire and cable maker over unpaid dues of ₹2.78 crore claimed by supplier Asier Metals Pvt. Ltd.
The tribunal held that the Ahmedabad bench of the National Company Law Tribunal (NCLT) was wrong in admitting the insolvency case.
A bench led by chairperson Justice Yogesh Khanna, along with technical members Barun Mitra and Ajai Das Mehrotra, allowed an appeal filed by Polycab‘s suspended director Bharat Ajay Jaisinghani. It cancelled the NCLT’s order admitting the case and all subsequent steps taken to start insolvency proceedings against the company.
The NCLAT’s written order was not available for access till press time
“We welcome the order of the NCLAT. We have consistently maintained that the matter is a commercial dispute and have pursued appropriate legal remedies. Our business fundamentals remain strong, backed by a healthy balance sheet and substantial liquidity. As disclosed in our latest financial results, Polycab had a net cash position of ₹4,000 crore as of 30 September 2026 and recorded its highest-ever half-yearly revenue and profit after tax in the first half of FY27,” said a company spokesperson in a statement.
Shares of Polycab India were trading 0.3% lower at ₹7,723 on the BSE at 3:07 pm on Friday.
The dispute relates to the supply of aluminium ingots by Asier Metals. The supplier had approached the NCLT under Section 9 of the Insolvency and Bankruptcy Code (IBC), claiming that Polycab had failed to clear its dues.
On 7 October, the NCLT’s Ahmedabad bench admitted the case and appointed Sunit Jagdishchandra Shah as the interim resolution professional (IRP) to oversee the insolvency process.
Polycab argued that the bills raised by Asier Metals were based on initial calculations and that the final amount payable had not been agreed upon. It also disputed an ₹80 lakh charge for delays in loading and unloading goods, saying the two companies were yet to settle the payment dispute.
Jaisinghani challenged the NCLT’s order before the NCLAT. On 9 October, the appellate tribunal temporarily halted the insolvency process and directed the deposit of the full amount claimed by the supplier with its Registrar.
Jaisinghani became a suspended director after the NCLT admitted Polycab into insolvency proceedings on 7 October. Under the IBC, the board’s powers were transferred to the IRP, automatically suspending the directors’ powers. He approached NCLAT as a person aggrieved in his capacity as Polycab India’s suspended director, under Section 61 of the Insolvency and Bankruptcy Code.
Mint had earlier reported concerns raised by bankruptcy experts over the use of the IBC as a tool to recover unpaid dues, rather than to resolve companies that are genuinely unable to repay their debts.
The Polycab case has brought this issue into focus again, highlighting the potential consequences of admitting financially strong companies into insolvency proceedings over relatively small payment disputes. Polycab reported a net cash position of more than ₹4,000 crore as of 30 September 2026, according to its latest financial results, compared with the supplier’s claim of ₹2.78 crore.
