Jindal Poly Films dispute, India’s first corporate class action under Section 245 of the Companies Act, 2013 has been set aside by the Supreme Court, on the joint request of the company and its substituted shareholder. The matter has now been referred to arbitration.
The vacation bench comprising Justice Prashant Kumar Mishra and Justice Atul S. Chandurkar passed the order.
“We appoint Justice Manindra Mohan Shrivastava, Retd. Chief Justice as the Sole Arbitrator, who shall decide upon the disputes expeditiously. The seat of arbitration shall be Delhi and the Learned Arbitrator may decide upon his own fee in consultation with the parties,” said the bench.
In March 2026, lead petitioner Ankit Jain exited the proceedings after divesting his shareholding in the company. Monet Securities, having subsequently acquired shares from Jain, stepped in as substitute petitioner in May 2026.
Read: NCLT allows Monet securities’ substitution application in Jindal Poly class action suit
Both Jindal Poly Films and Monet Securities then jointly approached the Supreme Court bench, submitting their mutual consent to refer the disputes to arbitration.
The dispute originated from a class action petition filed before the National Company Law Tribunal (NCLT), Principal Bench, New Delhi, wherein minority public shareholders alleged that Jindal Poly Films siphoned off over INR 2,500 crore through undervalued transactions involving promoter-linked entities. The NCLAT subsequently upheld the NCLT’s order, dismissing Jindal Poly Films’ appeal against the maintainability of the class action.
