National Company Law Appellate Tribunal (NCLAT) has upheld the admission of a class action lawsuit against Jindal Poly Films in a hearing on Thursday.
Jindal Poly Films had approached NCLAT challenging a 5 February ruling of the National Company Law Tribunal (NCLT) by way of which it admitted a class action lawsuit filed by minority shareholders against Jindal Poly Films, its board, management and promoters.
The class action lawsuit filed by minority shareholders led by Ankit Jain has claimed damages of Rs. 2,500 crore for wrongful actions of the company that resulted in monetary losses to minority shareholders.
As per the class action lawsuit provisions, a public notice will now be issued and other shareholders can join the list of original minority shareholders who had filed the lawsuit.
The ruling could have wide ranging implications for the rights of minority shareholders of listed companies in India because class action lawsuits have been rarely tested in courts and there is limited jurisprudence on the subject, legal experts said.
ET had reported on 28 November that capital market regulator securities and exchange board of India was investigating potential securities laws violations by Jindal Poly Films.
“Hon’ble National Company Law Appellate Tribunal (NCLAT) decided the appeal filed by us against the order passed by the Hon’ble National Company Law Tribunal (NCLT) on 05.02.2026. This decision rendered today (26) does not have any implications or bearing on the merits of the case as the Hon’ble NCLT is yet to start hearing the matter,” said a spokesperson for Jindal Poly Films.
The company reiterated that its business decisions were above board.
“The company reiterates that all business decisions were taken under commercial wisdom with necessary approvals as required under applicable laws. This decision does not impose any findings on the allegations made in the petition. The company is reviewing the order and shall decide on the next steps accordingly.”
Source: Economic Times