Jindal Poly Films Limited Vs Monet Securities Private Limited & Ors. (Supreme Court of India)
The Supreme Court disposed of a civil appeal arising from proceedings under Section 245 of the Companies Act, 2013 after the parties jointly consented to refer their disputes to arbitration. The appeal had challenged an NCLAT judgment dated 26 February 2026, which had upheld the NCLT’s order dated 5 February 2026 rejecting objections to the maintainability of a class action petition and directing issuance of public notice to shareholders.
Read NCLAT Judgment in this case: NCLAT Allows Class Action Claims for Past Acts Under Companies Act
Before the Supreme Court, both parties submitted draft minutes of a consent order seeking referral of the disputes to arbitration. It was represented that, upon reviewing the nature of the disputes and the efficacy of available remedies, arbitration would be a more suitable mechanism for adjudication. The appellant stated that it had no objection to the disposal of the pending company petition under Section 245 and to the appointment of an arbitrator by the Court.
Accepting the consensus between the parties, the Supreme Court referred the disputes to arbitration and appointed Justice Manindra Mohan Shrivastava, former Chief Justice, as the Sole Arbitrator. The Court directed that the arbitration proceedings be conducted with Delhi as the seat of arbitration and permitted the Arbitrator to determine his fees in consultation with the parties. The Supreme Court expressly set aside both the NCLT order dated 5 February 2026 and the NCLAT judgment that had upheld it. The Court clarified that the orders related only to the issue of maintainability before the NCLT and that all contentions of the parties were left open for consideration in arbitration.
