The National Company Law Appellate Tribunal (NCLAT) at Delhi on Friday set aside the insolvency proceedings initiated against Polycab India Limited on a plea filed by operational creditor Asier Metals Pvt. Ltd.
The order was passed by the bench of Officiating Chairperson Justice Yogesh Khanna and Technical Members Ajai Das Mehrotra and Barun Mitra.
The bench observed, "We allow the appeal, set aside the impugned order. The orders passed by the adjudicating authority initiating CIRP with the Corporate Debtor and all other orders pursuant to the impugned orders are also set aside. The Corporate Debtor company is released from the rigours of CIRP and is allowed to function independently through its board of directors"
The appeal was filed by Bharat Ajay Jaisinghani, suspended director of Polycab against an order dated 7 October 2026 of the National Company Law Tribunal, Ahmedabad (NCLT), which had admitted the operational creditor's application filed under Section 9 of the Code. The NCLAT had earlier stayed the impugned order on 9 October.
Asier Metals' business relationship with Polycab began in 2020 under terms requiring 100% advance payment against purchase orders for aluminium ingots. It said Polycab followed this arrangement until March 2026 but issued two purchase orders on June 8, 2026, and June 25, 2026 without making advance payments.
It kept supplying the aluminium ingots at a fixed rate of ₹405 per kg and raised 29 invoices totalling ₹34.16 crore. Polycab paid ₹30.96 crore. After accounting for refunds, credit notes, and other adjustments, Asier Metals claimed ₹2.78 crore as outstanding, with the default dated June 26, 2026.
Earlier the appellant had argued before the NCLAT that a pre‑existing dispute existed regarding payments and issuance of credit notes. It was pointed out that despite correspondence on the matter, the operational creditor issued a demand notice on August 6, 2026 and filed the a petition under Section 9 of IBC on 24 August 2026 instead of issuing the credit notes.
The appellant submitted that Polycab, being India's largest integrated manufacturer of wires and cables with significant national presence and financial strength, was willing to deposit the entire claimed amount of ₹2,78,70,157.22, without prejudice to its rights and contentions.
The bench accordingly had directed that the sum be placed in the form of an FDR in the name of the Registrar, NCLAT in the last hearing.