Author: Nishtha Mehrotra | EQMint
Synopsis
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- The NCLT admitted a ₹2.79 crore insolvency petition against Polycab India on October 7, 2026, following a claim by Asier Metals Pvt Ltd.
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- Polycab challenged the order, and the NCLAT subsequently stayed it, temporarily halting insolvency proceedings.
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- Investors are watching the next hearing on October 26 and the potential implications for the company’s stock and derivatives trading.
Data as of October 19, 2026
A ₹2.79 crore vendor dispute has put Polycab India, a company with a market capitalisation of over ₹1 lakh crore, under market scrutiny. The National Company Law Tribunal (NCLT), Ahmedabad Bench, admitted an insolvency petition filed by Asier Metals Pvt Ltd on October 7, 2026, under Section 9 of the Insolvency and Bankruptcy Code (IBC).
Polycab challenged the order before the National Company Law Appellate Tribunal (NCLAT) on October 8. The appellate tribunal subsequently stayed the NCLT order, temporarily halting the insolvency process. The next hearing is scheduled for October 26.
The dispute highlights how operational creditors can use the IBC to pursue unpaid dues, regardless of a company’s size. Polycab has disputed the insolvency proceedings and cited its financial position, including zero debt, net cash exceeding ₹4,000 crore and a net worth of ₹11,682 crore. However, the underlying commercial dispute remains unresolved.
The case also affected market sentiment. Polycab shares reportedly fell around 5.3% in one session, while the stock’s market capitalisation stood at approximately ₹1,23,594 crore. The company was also placed under IRP Stage 0 for trading, and the NSE announced its exclusion from the equity derivatives segment effective December 30, 2026. The reported ₹1,735 crore market-capitalisation loss could not be independently verified.
The key distinction is that Polycab is not currently undergoing an active insolvency process, following the interim stay. The final outcome remains pending, and the October 26 hearing will be important for investors tracking the dispute.
The case underscores the influence operational creditors can have under insolvency law while also highlighting why investors should distinguish between a tribunal’s initial admission of a petition and a final legal outcome.
Disclaimer: This article is for information purposes only and is not investment advice.
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