INDIA Law and Practice Contributed by: Roopali Singh, Yugank Goel, Aayushi Rout and Sushanth Sanjay, Vritti Law Partners
vulnerable to corporate misconduct. While inves- tors abroad obtained redress through class actions, Indian investors did not have a similar remedy under Indian law. This gap led to the introduction of Section 245 of the Companies Act, 2013 (“Companies Act”), which introduced India’s first statutory corporate class action. Around the same time, the Competition Act, 2002 (“Competition Act”), which allows collec- tive claims for damages arising from anti-competitive practices, and the National Green Tribunal Act, 2010 (“NGT Act”), which established a tribunal that enabled communities and organisations to bring representa- tive environmental claims, were enacted. The Contemporary Landscape By the late 2010s, India’s collective redressal ecosys- tem had expanded across domains – company law, competition, consumer, and environmental law. The Consumer Protection Act, 2019 (“CPA”) replaced the 1986 statute, creating a three-tier system of consumer commissions and establishing the Central Consumer Protection Authority (“CCPA”) with powers to take class-wide regulatory actions. Simultaneously, the National Green Tribunal (“NGT”) emerged as a strong forum for environmental justice, guided by principles such as “polluter pays” and “precautionary justice”. Though these frameworks differ in scope and proce- dure, the underlying policy directives have remained constant, namely to deliver collective justice efficiently, encourage public participation, and ensure account- ability from both government and private entities. 1.2 Basis for the Legislative Regime, Including Analogous International Laws India’s collective redress framework borrows selec- tively from comparative global experience while retain- ing its own distinctive character. It combines lessons from foreign legal systems with approaches shaped by local needs and constitutional values. While representative suits under the CPC were inspired by English law equity procedure, India chose a more cautious model. Unlike the American class action sys- tem, which uses “opt-out” mechanisms allowing all affected persons to be included automatically, Indian collective actions are generally “opt-in”, requiring the
court’s permission for participation and formal notice to all concerned. Comparative Corporate and Regulatory Influences The Companies Act was partly influenced by share- holder remedies developed in the United States and United Kingdom, particularly after major corporate scandals and collapses in those jurisdictions. How- ever, Indian law takes a more conservative approach. It sets stricter eligibility criteria and safeguards to dis- courage frivolous or speculative claims. Similarly, the Competition Act reflects the model used in the European Union (“EU”), where collective claims for damages can be made only after the competition authority finds a violation. In India, such actions can be filed only after the Competition Commission of India (“CCI”) confirms that an infringement has occurred. Public Law and Environmental Parallels The PIL movement drew inspiration from the Ameri- can “public law litigation” model, where organisations such as the National Association for the Advancement of Colored People (NAACP) used strategic litigation for civil rights. However, India’s courts transformed the idea into a uniquely constitutional concept. PIL became a powerful tool for social justice, adapting it to poverty, environmental degradation, and failures in public administration. Similarly, in the environmen- tal field, the NGT Act and related jurisprudence have also been shaped by international environmental laws. Principles from key global instruments such as the Stockholm Declaration 1972, Rio Declaration 1992, and the Basel Convention 1989, were embedded in domestic law. Consumer Protection The CPA also reflects notable influences from the EU. Like EU’s consumer protection framework, it moves beyond individual dispute resolution toward pre- ventive and regulatory action. In particular, the CPA empowers the CCPA to act on behalf of consumers collectively, ensuring proactive enforcement. 1.3 Implementation of the EU Collective Redress Regime There is no applicable information in this jurisdiction.
147 CHAMBERS.COM
Powered by FlippingBook