NCLAT Rejects Stay on NCLT Order Allowing Class Action Against Jindal Poly Films

The National Company Law Appellate Tribunal (NCLAT) has declined to stay a National Company Law Tribunal (NCLT) order admitting a class action petition against Jindal Poly Films. Minority shareholders allege siphoning of over Rs 2,500 crore. The NCLAT bench found the petition met the criteria under Section 245 of the Companies Act, 2013, which allows stakeholders to seek remedies for prejudicial management or fraudulent conduct. Jindal Poly Films' appeal against the NCLT order was dismissed.