Litigation Update
Supreme Court Sets Aside NCLT and NCLAT Orders in Jindal Poly Films Dispute; Refers Matter to Sole Arbitrator
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BSE
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Jindal Poly Films Limited has informed stock exchanges that the Hon’ble Supreme Court of India has set aside the earlier orders of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) in its dispute involving Monet Securities Pvt. Ltd. and others. The Supreme Court has referred the disputes to a sole arbitrator appointed by the Court. The company stated that the matter remains sub-judice and financial implications cannot be ascertained at this stage.
PRICE-SENSITIVE TRIGGER
Event: Supreme Court order setting aside NCLT and NCLAT rulings and referring disputes to arbitration.
Type: Litigation Update
Impact: Neutral
Immediate Effect: The legal proceedings before NCLT and NCLAT have been nullified, and the dispute will now be adjudicated through arbitration under a sole arbitrator appointed by the Supreme Court.
Key Metrics:
- Financial impact: Not ascertainable at present.
- Date of Supreme Court Order: June 8, 2026.
- Date of Communication Received: June 8, 2026.
- Matter Status: Sub-judice.
Highlight:
- Supreme Court has referred the dispute to arbitration while setting aside earlier NCLT and NCLAT orders.
What Happened ?
Jindal Poly Films Limited received a communication regarding an order passed by the Hon’ble Supreme Court of India on June 8, 2026.
The Supreme Court set aside the order dated February 5, 2026 passed by the National Company Law Tribunal (NCLT) and the impugned order dated February 26, 2026 passed by the National Company Law Appellate Tribunal (NCLAT) concerning maintainability issues before the NCLT.
The Court further directed that the disputes between the parties be referred to a sole arbitrator appointed by the Supreme Court for adjudication.
Key Details
Supreme Court Litigation Update:
- Opposing Party: Monet Securities Pvt. Ltd. and others.
- Authority Issuing Order: Hon’ble Supreme Court of India.
- Communication Received: June 8, 2026.
- Supreme Court set aside NCLT order dated February 5, 2026.
- Supreme Court also set aside NCLAT order dated February 26, 2026.
- The issue related to maintainability of proceedings before NCLT.
- The disputes have now been referred to a sole arbitrator.
- Arbitration mechanism will replace the earlier tribunal proceedings.
- The matter continues to remain under judicial consideration.
Note:
- The order does not resolve the underlying dispute on merits. Instead, it changes the forum of adjudication from insolvency-related tribunals to arbitration proceedings.
Risk Analysis
Summary:
- The litigation remains unresolved and has moved into arbitration. While the company has obtained procedural relief through the Supreme Court order, the final outcome of arbitration remains uncertain.
Key Risks:
- Arbitration proceedings may take time before final resolution.
- Financial liability, if any, remains undetermined.
- The underlying dispute continues to remain active.
- Future arbitration awards may create financial or operational implications.
- Additional legal challenges cannot be ruled out.
Worst Case Scenario:
- An adverse arbitral award could result in financial liabilities, compensation obligations, or other consequences depending on the final adjudication of the dispute.
Risk Level: Medium
Company Commentary
- The company confirmed receipt of the Supreme Court order dated June 8, 2026.
- NCLT and NCLAT orders have been set aside by the Court.
- Disputes have been referred to a sole arbitrator appointed by the Supreme Court.
- The company stated that financial implications, if any, cannot presently be determined because the matter remains sub-judice.
- Appropriate steps will be taken by the company in accordance with the judicial proceedings.
Official Exchange Filing: Jindal Poly Films Limited