NCLAT scraps insolvency proceedings against Polycab over ₹2.78 crore claim
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.
The National Company Law Appellate Tribunal (NCLAT) has dismissed insolvency proceedings against Polycab India Ltd over a ₹2.78 crore claim from supplier Asier Metals Pvt. Ltd. The tribunal ruled that the Ahmedabad bench of the National Company Law Tribunal (NCLT) incorrectly admitted the case, overturning all steps taken to initiate insolvency proceedings.
Polycab's suspended director, Bharat Ajay Jaisinghani, had appealed the NCLT's decision. The company maintains that the dispute is a commercial one and that it remains financially strong, with a net cash position of ₹4,000 crore as of September 2026 and a strong balance sheet. Polycab challenged the claims made by Asier Metals over aluminium ingot supplies, disputing the final payable amount and a ₹80 lakh charge for delays.
The NCLAT's decision comes amid ongoing debates about using the Insolvency and Bankruptcy Code (IBC) to resolve payment disputes instead of addressing truly insolvent companies.
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