NCLAT Sets Aside Insolvency Proceedings Against Polycab Over ₹2.78 Crore Dues

The National Company Law Appellate Tribunal (NCLAT) on Friday set aside the insolvency proceedings initiated against cable and wire manufacturer Polycab India Limited over alleged operational dues of ₹2.78 crore.A bench of officiating chairperson Justice Yogesh Khanna and technical members Barun Mitra and Ajai Das Mehrotra allowed the appeal filed by Polycab’s suspended director Bharat Ajay Jaisinghani against the admission of an insolvency petition by Asier Metals Private Limited.Pronouncing its decision, the NCLAT held that the adjudicating authority had erroneously admitted the application under Section 9 of the Insolvency and Bankruptcy Code (IBC).It consequently set aside the admission order, the initiation of the corporate insolvency resolution process (CIRP) and consequential orders, releasing Polycab from the proceedings.The dispute arose from supplies of aluminium ingots by Asier Metals. On October 7, the NCLT Ahmedabad admitted the operational creditor’s petition and appointed Sunit Jagdishchandra Shah as Interim Resolution Professional.Polycab had opposed the petition, arguing that the invoices reflected provisional billing, the parties’ ledgers required reconciliation and an ₹80 lakh deduction towards demurrage remained pending. It maintained that these issues constituted a pre-existing dispute barring admission of the insolvency petition.However, the NCLT bench of judicial member Shammi Khan and technical member Sanjeev Sharma rejected these defences.It noted th

Source: Original reporting via Bar and Bench