Jindal Poly Class Action Returns to Supreme Court; Minority Shareholders Challenge Referral to Arbitration in India’s First Admitted Section 245 Class Action

Supreme Court to hear plea on 17 July questioning whether an admitted class action involving nearly 40,000 shareholders could be concluded through a settlement with a single substituted shareholder

India’s first admitted corporate class action under Section 245 of the Companies Act, 2013, involving nearly 40,000 public shareholders of Jindal Poly Films Limited, has once again reached the Supreme Court, potentially raising important questions on the future of minority shareholder protection and the scope of corporate class actions in India.

Add LawBhoomi as your preferred source on Google.

Add Now →

Senior Advocate Kapil Sibal, appearing on behalf of the minority shareholders, today mentioned the matter before the Hon’ble Chief Justice of India, seeking urgent intervention over the manner in which the admitted class action proceedings came to an end through a settlement between the company and a single substituted shareholder, following which the dispute was referred to arbitration.

During the mentioning, it was submitted that the class action had already been admitted by the National Company Law Tribunal (NCLT) and affirmed by the National Company Law Appellate Tribunal (NCLAT), thereby assuming the character of an in rem proceeding affecting the rights of the entire class of shareholders. It was further submitted that despite the proceedings representing the interests of nearly 40,000 public shareholders, the matter was referred to arbitration during the Supreme Court’s summer vacation without notice to or participation of the larger body of affected shareholders.

Taking note of the submissions, the Hon’ble Chief Justice directed that the minority shareholders’ miscellaneous application be listed for hearing on 17 July 2026.

The application seeks reconsideration of the order referring the dispute to arbitration and raises broader questions regarding the maintainability and settlement of statutory class actions under Section 245 of the Companies Act.

The upcoming hearing is expected to have implications extending beyond the present dispute, particularly on issues relating to the rights of minority shareholders, representative litigation, corporate governance, and the circumstances in which statutory class actions may be settled or referred to arbitration.

With the matter now scheduled before the Supreme Court on 17 July 2026, the proceedings are likely to be closely watched by listed companies, institutional investors, securities law practitioners, and corporate governance stakeholders across the country.