The Supreme Court has ended India’s first corporate class action by referring the Jindal Poly Films dispute to arbitration. The move has sparked concerns over whether the rights of nearly 40,000 public shareholders can be affected through a settlement involving a substituted petitioner.
The National Company Law Appellate Tribunal (NCLAT) dismissed Jindal Poly Films Limited’s appeal challenging the National Company Law Tribunal (NCLT) order admitting a shareholder class action petition and directing issuance of public notice under the Companies Act, 2013, affirming continuation of class action proceedings.
