The National Company Law Appellate Tribunal (NCLAT), New Delhi, has stayed insolvency proceedings against Polycab India Limited arising from an alleged operational debt of approximately ₹2.78 crore claimed by Asier Metals Private Limited. The interim order keeps the insolvency admission in abeyance, subject to the deposit of the disputed amount with the Tribunal's Registrar.
Background of the Dispute
The dispute originated from the supply of aluminium ingots by Asier Metals to Polycab India. Asier Metals alleged that ₹2,78,70,157.22 remained outstanding after accounting for invoices, payments, refunds and credit notes.
Asier Metals initiated proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking commencement of the Corporate Insolvency Resolution Process (CIRP) against Polycab India as an operational creditor.
On October 7, 2026, the National Company Law Tribunal (NCLT), Ahmedabad Bench, admitted the insolvency application and initiated the CIRP. The order was subsequently challenged before the NCLAT by Bharat Ajay Jaisinghani, a suspended director of Polycab India.
Polycab Raises Objections to the Debt Claim
Before the appellate tribunal, the appellant argued that a pre-existing commercial dispute existed between the parties concerning payment reconciliation, provisional billing and the issuance of credit notes. The defence also referred to adjustments relating to the transactions and a disputed demurrage deduction.
Polycab's position was that the amount claimed by Asier Metals required further reconciliation. Asier Metals, however, contested the assertion that a genuine pre-existing dispute justified denying the operational debt.
NCLAT Orders Deposit of the Disputed Amount
On October 9, 2026, a three-member NCLAT Bench comprising Officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra granted interim relief.
The appellant expressed willingness to deposit the full claimed amount of ₹2,78,70,157.22 without prejudice to the parties' rights and contentions. The Tribunal directed that the amount be deposited in the form of a fixed deposit receipt in the name of the Registrar, NCLAT, New Delhi, within one week.
Subject to the deposit, the Tribunal stayed the NCLT's October 7 order and directed that it remain in abeyance until further orders. The interim direction temporarily suspends the effect of the insolvency admission while the appeal remains pending.
Next Hearing
The appeal, titled Bharat Ajay Jaisinghani v. Asier Metals Private Limited & Anr., is listed for further hearing on October 26, 2026.
The interim order does not finally determine whether the alleged debt is payable or resolve the parties' dispute concerning invoices, credit notes and payment adjustments. The matter will be considered further by the appellate tribunal.
Legal Significance
The proceedings highlight the application of Section 9 of the Insolvency and Bankruptcy Code, 2016, which enables an operational creditor to seek initiation of the CIRP in cases of qualifying default. They also illustrate the distinction between an order admitting an insolvency application and interim appellate relief granted while that admission is under challenge.
The final outcome will depend on the issues considered by the NCLAT in the pending appeal. The interim stay should not be treated as a final ruling on the existence or enforceability of the disputed debt.
Source: Bar & Bench, LiveLaw Biz and 24Law.in, reporting on the NCLAT's order dated October 9, 2026.