Business & Finance

NCLAT Reverses Insolvency Case Against Polycab Over ₹2.78 Crore Claim

By Krishna Yadav

In a decision that eased pressure on Polycab India Ltd, the National Company Law Appellate Tribunal (NCLAT) on Friday set aside insolvency proceedings that had been initiated by the National Company Law Tribunal (NCLT) over unpaid dues of ₹2.78 crore claimed by supplier Asier Metals Pvt. Ltd. The NCLAT bench, headed by Justice Yogesh Khanna with technical members Barun Mitra and Ajai Das Mehrotra, dismissed an appeal filed by Polycab’s suspended director Bharat Ajay Jaisinghani. The tribunal cancelled the NCLT’s order that had admitted the case and all subsequent steps that had begun the insolvency process against the company.

Polycab’s spokesperson welcomed the order, noting that the company has maintained that the dispute is a commercial matter and has pursued appropriate legal remedies. The spokesperson added that Polycab’s business fundamentals remain strong, citing a net cash position of ₹4,000 crore as of 30 September 2026 and its highest‑ever half‑yearly revenue and profit after tax in the first half of FY27.

Polycab shares were trading 0.3% lower at ₹7,723 on the BSE at 3:07 p.m. on Friday.

The dispute arose from the supply of aluminium ingots by Asier Metals. The supplier approached the NCLT under Section 9 of the Insolvency and Bankruptcy Code (IBC), alleging 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, who became a suspended director after the NCLT admitted Polycab into insolvency proceedings, 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.

The case has highlighted concerns among bankruptcy experts about the use of the IBC to recover unpaid dues rather than to resolve companies that are genuinely unable to repay their debts. It has brought attention to 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.