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Informist, Wednesday, Jul. 15, 2026

 

--SC to hear Jindal Poly minority shareholders plea in class action suit Fri 

--CONTEXT: SC referred class action case against Jindal Poly to arbitration 

--CONTEXT: Jindal Poly minority shrholders sought reviving class action suit 

 

NEW DELHI – The Supreme Court Wednesday agreed to Friday hear Jindal Poly Films Ltd.'s minority shareholders' plea seeking recall of the court's order which had set aside the class action suit against the company and referred the dispute to arbitration. The minority shareholders of Jindal Poly Films had argued that the class action suit filed against the company could not be settled without hearing from them.

 

Last month, the Supreme Court set aside the admission of class action suit against Jindal Poly Films filed by its shareholders holding 4.99% of the share capital, rejecting India's first admission of a class action suit against a company. The apex court had referred Jindal Poly and its shareholders to arbitration with the consent of the parties and appointed retired chief justice of the Madras High Court, Manindra Mohan Shrivastava, as the sole arbitrator. 

 

Advocate Kapil Sibal, appearing for the minority shareholders, questioned how a pending class action came to an abrupt halt by way of a settlement by one sole shareholder with the company. In apparent collusion between Jindal Poly and the one shareholder, the dispute was referred to arbitration during the summer vacation, without other shareholders being informed, said Sibal. 

 

The minority shareholders have said denial of participation would result in a situation where the fate of a representative proceeding is decided without hearing those who stand to be most directly affected by its outcome. A class action is a representative proceeding on behalf of all minority shareholders and, therefore, could not have been settled between Jindal Poly Films and Monet Securities Pvt. Ltd. without hearing from the remaining shareholders who formed part of the class. 

 

On Feb. 26, the National Company Law Appellate Tribunal had dismissed Jindal Poly's appeal against the Delhi bench of the National Company Law Tribunal's order to admit the class action suit against the company. In May, the Delhi tribunal had also allowed the substitution application of Monet Securities Pvt. Ltd. for taking the case forward against Jindal Poly Films. Ankit Jain, the original petitioner of this suit, had sold his shares in Jindal Poly Films to Monet Securities, which acquired around 5% stake in the company and filed a substitution application. Consequently, Jindal Poly Films made Monet Securities one of the respondents in its challenge to the class action suit.   

 

The petitioners had argued that all eligible minority shareholders became part of the class once the tribunal admitted the petition and issued a public notice, unless they opted out. The petitioners said the substituted applicant Monet Securities could not unilaterally settle the proceedings on behalf of all shareholders. The petitioners have sought restoration of class action suit against Jindal Poly Films before the tribunal and an opportunity to be heard.

 

The case has its genesis from the shareholders of Jindal Poly alleging that the company's transactions were undervalued, resulting in losses exceeding INR 25 billion. The shareholders had moved the Delhi tribunal against the transactions undertaken by Jindal Poly Films, which allegedly stripped the company of valuable assets and resulted in monetary losses to minority shareholders. Jindal Poly Films sold some of its investments at hugely undervalued or scrap rates to SSJ Trust, an entity of Jindal Poly Films' promoter Shyam Sunder Jindal, the shareholders had said. 

 

At 1140 IST, the shares of Jindal Poly Films Ltd. were down 0.7% at INR 668.00 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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