The National Company Law Appellate Tribunal (NCLAT) has set aside insolvency proceedings against Polycab India, ruling that a pre-existing dispute over credit notes, detention and demurrage charges was sufficient to reject the insolvency admission. The appellate tribunal allowed an appeal filed by Polycab's suspended director Bharat Ajay Jaisinghani and overturned the National Company Law Tribunal's (NCLT) Oct 7 order admitting an insolvency petition filed by operational creditor Asier Metals.
Polycab has been released from the corporate insolvency resolution process with immediate effect and can function independently through its board of directors.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
The dispute involved alleged outstanding operational dues of Rs 2.78 crore arising from the supply of aluminium ingots. Polycab had contested the amount, citing unresolved credit notes, provisional billing, discounts, detention and demurrage charges, and reconciliation of accounts.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
A key factor has been correspondence exchanged between the two companies before Asier Metals issued its statutory demand notice on August 6, 2026. The tribunal noted that Polycab had sought an adjustment of Rs 80 lakh towards detention and demurrage charges in January 2026. Subsequent email exchanges in February discussed delayed deliveries and resulting commercial losses, with Asier Metals indicating that the charges would be worked out.
WhatsApp exchanges in June and July also showed Polycab seeking credit notes for detention and demurrage charges, premium discounts and reconciliation of ledgers. In an email dated July 22, Polycab disputed the outstanding amount and said mutually agreed credit notes were still pending.
The NCLAT held that the correspondence demonstrated that the dispute was alive before the demand notice was issued. It observed that the issues could not be dismissed as a "patently feeble legal argument" or an assertion unsupported by evidence.
The tribunal also rejected the argument that Polycab could not rely on its detailed response to the demand notice because it was filed after the insolvency petition was instituted on August 24. It said material establishing a pre-existing dispute could still be considered.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
