NCLAT Upholds Class Action Lawsuit Admission Against Jindal Poly Films

The National Company Law Appellate Tribunal (NCLAT) upheld the admission of a class action lawsuit filed by minority shareholders against Jindal Poly Films, rejecting the company's plea to stay the National Company Law Tribunal's (NCLT) February order. The lawsuit claims Rs. 2,500 crore in damages for alleged wrongful actions causing losses to minority shareholders. Jindal Poly argued the petition was not maintainable and raised concerns about reputational harm from required disclosures. This case marks a significant test of class action provisions for minority shareholders in India.