NCLAT scraps insolvency proceedings against Polycab over Rs.2.78 crore claim

What happened

The National Company Law Appellate Tribunal set aside insolvency proceedings against Polycab India Ltd over Rs.2.78 crore in unpaid dues claimed by supplier Asier Metals Pvt. Ltd. It ruled the Ahmedabad bench of the National Company Law Tribunal was wrong to admit the case.

Confirmed

Global impact / market context

Removing the insolvency case lifts a legal cloud over the wire and cable maker. Polycab said the matter was a commercial dispute, a disagreement over a business contract rather than a true default, and it reported a net cash position of Rs.4,000 crore.

Analyst inference

Polycab shares traded 0.3% lower at Rs.7,723 on the BSE. The company cited its highest-ever half-yearly revenue and profit after tax for the first half of FY27, which may support investor views that its balance sheet and cash available remain strong.

Analyst inference

What to watch

1. The NCLAT's written order was not available for access at press time, so the full reasoning behind the ruling has not yet been published. Confirmed
2. Watch whether Asier Metals pursues other legal routes over the Rs.2.78 crore claim, which could keep a commercial dispute alive for Polycab. Analyst inference
3. Watch Polycab's next financial results for signs its healthy balance sheet, net cash and half-yearly revenue growth continue after the case is cleared. Analyst inference

Evidence

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