NCLT allows Rs. 2,500-crore class action lawsuit against Jindal Poly Films
The NCLT has admitted a class action lawsuit against Jindal Poly Films, potentially opening doors for minority shareholder rights.Summary
The National Company Law Tribunal (NCLT) has allowed a Rs. 2,500-crore class action lawsuit filed by minority shareholders against Jindal Poly Films. The shareholders allege wrongful actions by the company led to monetary losses. While the NCLT has not yet ruled on the merits of the case, it rejected arguments from Jindal Poly Films, its promoters, and management claiming the lawsuit was not maintainable. A public notice will now be issued, allowing other shareholders to join the suit.
Legal experts believe this ruling could significantly impact the rights of minority shareholders in India, as class action lawsuits are rarely tested in Indian courts. The NCLT order explicitly states that the questions raised are yet to be adjudicated on their merits and Jindal Poly Films is entitled to defend against all allegations.
A spokesperson for Jindal Poly Films stated that the hearing was solely regarding the maintainability of the suit. The Securities and Exchange Board of India (SEBI) is also investigating potential securities law violations by Jindal Poly Films. Further arguments are scheduled for April 2nd, with JSA representing Jindal Poly Films and Saraf and Partners representing the minority shareholders.
(Source：The Economic Times)