As National Company Law Tribunal (NCLT) resumes the hearing on the class action suit filed by minority share holders against Jindal Poly Films Ltd, its implications on minority shareholder rights, corporate governance standards, and the enforceability of class action remedies in India has once again come to the limelight.

The ‘Ankit Jain & Ors. vs. Jindal Poly Films Limited & Ors.’ case is widely regarded as the first class action suit under Section 245 of the Companies Act, 2013 to reach substantive adjudication and hence a landmark development in India’s corporate litigation landscape.

The dispute originates from complaints raised by Ankit Jain, a minority public shareholder of Jindal Poly Films Limited (JPFL), alleging serious governance lapses, financial mismanagement, and securities law violations by the company and its promoters. The allegations primarily relate to write-offs of investments in connected entities, inadequate disclosures, and transactions that allegedly resulted in significant losses to shareholders.

In 2023, Ankit Jain had filed a complaint before Securities and Exchange Board of India (Sebi) alleging Securities law violations, mismanagement of company funds and lack of adequate disclosures to shareholders.

An independent investigation initiated by Sebi into the company’s affairs had also given credence to Jain’s complaint as it is known to have identified multiple violations, including lack of transparency in related-party dealings and actions detrimental to shareholder value. Sebi has since sought to place its findings on record in the ongoing proceedings before the National Company Law Tribunal (NCLT). The matter has since evolved through multiple judicial stages.

Based on these allegations, Jain and a group of other minority shareholders filed a class action suit against the company before NCLT (Principal Bench, New Delhi) in 2024. NCLT admitted the matter in 2025, though the decision was challenged before the National Company Law Appellate Tribunal (NCLAT) by the company seeking a stay on the proceedings. Since NCLAT declined to stay NCLT proceedings, the case has now resumed, reinforcing the momentum of the class action.

As the matter is being heard by NCLT, new shareholders have joined the action while some earlier participants have exited. Legal experts say this evolving participation reflects increasing strategic interest and dynamic positioning among minority investors. The case is currently pending adjudication before the NCLT, Principal Bench, with SEBI’s findings expected to play a crucial role in shaping the outcome.