National Company Law Tribunal, Ahmedabad Bench, had admitted the insolvency proceedings filed against Polycab via order dated 7 October. The petition was filed by the company’s operational creditor Asier Metals Private Ltd. Polycab moved an appeal before NCLAT against the order.
“We are of the considered view that the Adjudicating Authority has erroneously admitted the application under Section 9 of the IBC. We allow the Appeal and set aside the impugned order,” NCLAT said in its order dated 30 October.
The orders passed by the Adjudicating Authority initiating Corporate Insolvency Resolution Process (CIRP) against Polycab and all other orders pursuant to impugned order are also set aside.
Polycab is released from the rigours of CIRP and is allowed to function independently through its board of directors with immediate effect, NCLAT ruled.