NCLAT upholds admission of class action lawsuit against Jindal Poly Films
The NCLAT upheld the admission of a class action lawsuit against Jindal Poly Films, potentially impacting minority shareholder rights.Summary
The National Company Law Appellate Tribunal (NCLAT) has affirmed the National Company Law Tribunal’s (NCLT) decision to admit a class action lawsuit against Jindal Poly Films. The lawsuit, initiated by minority shareholders led by Ankit Jain, seeks damages of Rs. 2,500 crore, alleging wrongful actions by the company that led to financial losses for minority shareholders. Following this ruling, a public notice will be issued, allowing other shareholders to join the suit.
Legal experts suggest this decision could significantly impact the rights of minority shareholders in India, as class action lawsuits are infrequently tested in Indian courts and have limited legal precedent. The Securities and Exchange Board of India (SEBI) was previously investigating potential securities law violations by Jindal Poly Films.
Jindal Poly Films maintains that the NCLAT’s decision does not address the merits of the case, as the NCLT has yet to begin hearing the matter, and reiterates that its business decisions were made with commercial wisdom and proper approvals. The company is currently reviewing the order and will determine its next course of action.
(Source：The Economic Times)