The National Company Law Tribunal on Thursday, May 7, 2026, allowed Monet Securities Pvt. Ltd. to take over as the lead petitioner in India's first-ever class action suit filed by minority shareholders against Jindal Poly Films Ltd., even as the case threw up fresh disputes over shareholder participation.
The tribunal permitted the substitution of Monet Securities in place of the original petitioner, Ankit Jain, after Monet acquired the shares previously held by Jain. The application for substitution had been filed after Jain exited his shareholding, raising questions over the continuity of the class action proceedings.
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Monet Securities argued that the exit of the original shareholder did not extinguish the class action, as the cause of action survives so long as public shareholders remain affected. The tribunal accepted the submission and allowed Monet to continue leading the proceedings.
A major point of contest during the hearing related to 48 intervention applications filed by minority shareholders seeking to be heard in the matter. Senior counsel appearing for Jindal Poly Films opposed these applications, informing the bench that 27 out of the 48 shareholders had already sold their entire shareholding in the company. On this basis, the company questioned whether the remaining intervenors had the locus to make submissions in the proceedings.
Responding to the objections, senior advocate Abhinav Vasisht, appearing for the minority shareholders, alleged that steps were being taken to systematically acquire the shares of public investors with the objective of discouraging opposition to the class action.
He submitted that once a class action is admitted, all public minority shareholders automatically form part of the class unless they expressly opt out, and therefore cannot be excluded merely because some shareholders have exited.
Taking note of the submissions, the tribunal directed Jindal Poly Films to file a detailed affidavit stating the names and particulars of shareholders who have sold their shares.
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Separately, senior counsel for the Securities and Exchange Board of India sought additional time to file a rejoinder to Jindal Poly's reply to SEBI's intervention application. The bench granted the request.
The case is being closely watched as the first class action by public shareholders under Indian company law. The tribunal will hear the main class action and all connected applications next on May 21, 2026.
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