NCLAT quashes ₹2.78 crore insolvency proceedings against Polycab | Today’s news
New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Friday quashed the insolvency proceedings against wire and cable maker Polycab India Ltd over unpaid dues. ₹2.78 crore claimed by supplier Asier Metals Pvt. Ltd.
The tribunal ruled that the Ahmedabad bench of the National Company Law Tribunal (NCLT) erred in admitting the insolvency case.
A bench headed by Chief Justice Yogesh Khanna along with technical members Barun Mitra and Ajai Das Mehrotra allowed the appeal filed by suspended Polycab director Bharat Ajay Jaisinghani. It quashed the NCLT’s order accepting the case and all subsequent steps taken to initiate insolvency proceedings against the company.
NCLAT’s written order was not available for access till press time
“We welcome the NCLAT order. We have consistently argued that this is a commercial dispute and have taken appropriate legal remedies. Our business fundamentals remain strong, supported by a healthy balance sheet and substantial liquidity. As shown in our latest financial results, Polycab had a net cash position of ₹4,000 crore as of September 30, 2026 and recorded its highest ever half-yearly revenue and profit after tax in the first half of FY27,” a company spokesperson said in a statement.
Shares of Polycab India traded 0.3% lower ₹7,723 on BSE at 3:07 PM on Friday.
The dispute concerns the supply of aluminum ingots by Asier Metals. The supplier approached the NCLT under Section 9 of the Insolvency and Bankruptcy Code (IBC) alleging that Polycab had defaulted on its dues.
On October 7, the NCLT in Ahmedabad admitted the case and appointed Sunit Jagdishchandra Shah as Interim Resolution Professional (IRP) to oversee the insolvency process.
Polycab argued that the bills collected by Asier Metals were based on initial calculations and that the final amount due had not been agreed. It also challenged the an ₹80 million charge for delay in loading and unloading of goods, with the two companies yet to resolve the payment dispute.
Jaisinghani challenged the NCLT order before the NCLAT. On October 9, the appeals tribunal temporarily halted the insolvency process and ordered the deposit of the full amount claimed by the supplier with its registrar.
Jaisinghani became a suspended director after the NCLT on October 7 admitted Polycab into insolvency proceedings. Under the IBC, the powers of the board were transferred to the IRP, automatically suspending the powers of the directors. He approached the NCLAT as an aggrieved person in his capacity as a suspended director of Polycab India under Section 61 of the Insolvency and Bankruptcy Act.
Mint has previously reported on concerns raised by bankruptcy experts about using the IBC as a tool to recover unpaid dues rather than deal with companies that are genuinely unable to pay their debts.
The Polycab case brought this issue to the fore again, drawing attention to the possible consequences of accepting financially strong companies into insolvency proceedings in the event of relatively small payment disputes. Polycab reported a net cash position of more than ₹4,000 crore as on September 30, 2026 as per the latest financial results compared to the supplier’s claim of ₹2.78 million.
