Polycab India shares rise 2% as NCLAT sets aside insolvency proceedings

The NCLAT order sets aside the insolvency proceedings admitted by the Ahmedabad bench of the National Company Law Tribunal (NCLT) on October 7, following a petition filed by operational creditor Asier Metals Private Ltd over an alleged outstanding debt of Rs 2.79 crore. How the dispute unfolded Asier Metals issued a demand notice to Polycab on August 6, 2026, over an alleged operational debt of Rs 2,78,70,157.

It filed a petition under Section 9 of the Insolvency and Bankruptcy Code on August 24. On October 7, the NCLT Ahmedabad bench admitted the petition and initiated insolvency proceedings against Polycab. The NCLAT stayed the admission order on October 9, following an appeal by Polycab's suspended director Bharat Ajay Jaisinghani. Polycab argued that there was a pre-existing dispute over payments and credit notes and offered to deposit the claimed amount without prejudice to its rights.

The appellate tribunal directed that the amount be placed in a fixed deposit in the name of the NCLAT Registrar within a week. Despite the stay, Polycab remained under the stock exchanges' insolvency surveillance framework. The NSE subsequently announced that the company's equity derivatives contracts would be phased out, with trading in the segment set to end on December 30, 2026. On October 27, the NCLAT also directed MSCI not to delete Polycab from its indices until it pronounced its order in the appeal.

The insolvency proceedings stemmed from a disputed claim of Rs 2.79 crore, a relatively small amount for Polycab, which reported annual revenue of around Rs 29,100 crore and has a market capitalisation of more than Rs 1.1 lakh crore. The case had raised concerns over the impact of insolvency-related stock market restrictions even after an admission order is stayed.