Collective Redress and Class Actions_2025

INDIA Law and Practice Contributed by: Roopali Singh, Yugank Goel, Aayushi Rout and Sushanth Sanjay, Vritti Law Partners

18 (2)(e), “any person aggrieved, including any repre- sentative body or organisation”, may initiate collec- tive environmental action. Sections 15-20 of the NGT Act grant the NGT broad remedial powers, including granting of compensation, restitution, and injunctive relief, guided by the precautionary, polluter pays, and sustainable development principles. 2.2 Scope of Areas of Law to Which the Legislation Applies India’s collective redress mechanisms extend across a wide range of legal fields, covering both private law (such as civil, corporate, and consumer disputes) and public law (such as constitutional and environmental matters). Although each regime has a different forum, purpose, and procedure, they share the common goal of ensuring that groups of affected people (such as shareholders, consumers, depositors, citizens, or communities) can seek relief when harm is wide- spread or systemic, rather than individual. • Civil and Commercial Disputes: The procedural foundation for collective claims lies in Order I Rule 8 of the CPC. This provision applies to any civil proceeding involving a number of parties with a common interest. Representative suits under the CPC remain especially useful in areas not gov- erned by specialised statutes. • Public and Constitutional Matters: PILs under Articles 32 and 226 of the Constitution allow any individual or organisation to seek judicial interven- tion for enforcement of fundamental and statutory rights. The Supreme Court and high courts enter- tain petitions concerning governmental inaction, administrative illegality, and violations affecting marginalised or voiceless groups. PILs address subjects as varied as bonded labour, prison reform, electoral transparency and urban pollution. • Corporate Governance and Investor Protection: The Companies Act provides specialised collective remedies for shareholders and depositors under Section 241 and Section 245, arising from corpo- rate governance violations, director misconduct, audit failures, and breach of fiduciary duties affect- ing shareholders collectively. Applications are adju- dicated by the NCLT, which may grant injunctive, declaratory or compensatory relief. Together, they link corporate accountability with investor protec-

tion, ensuring that collective shareholder interests are legally enforceable. • Competition Law: Under Section 53N of the Com- petition Act, any person who has suffered loss due to anti-competitive conduct can seek compensa- tion by bringing a proceeding before the NCLAT. Sub-section (4) of Section 53N allows representa- tive claims, enabling one or more persons to apply on behalf of others with the same interest, thereby introducing a representative model arising from market misconduct by way of cartel and abuse of dominance issues. • Securities Market Regulation: Collective redress in the Indian securities market operates indirectly through the SEBI Regulations, which authorise SEBI to finance legal proceedings “affecting a large number of investors”. The regime enables co-ordinated investor actions in cases of fraudulent disclosures, insider trading or market manipulation. • Consumer Protection: The CPA’s scope extends across consumer transactions involving both goods and services, with particular emphasis on e-commerce and digital markets. The CCPA may itself initiate class-wide regulatory proceedings, order recalls or refunds, and impose monetary penalties for unfair or misleading practices. Further, class action complaints under Section 35 (1)(c) address diverse consumer issues, including defec- tive products, service deficiencies, unfair trade practices, and misleading advertisements. • Environmental Protection: The NGT’s jurisdiction covers all civil environmental matters involving “substantial questions relating to environment” under statutes listed in Schedule I of the NGT Act. The jurisdiction encompasses air and water pollu- tion, forest conservation, biodiversity protection, environmental clearances, and climate change impacts. The NGT’s suo moto powers enable intervention in environmental emergencies without waiting for formal complaints. Although the above statutes constitute the core frame- work, representative procedures also appear in niche contexts such as consumer finance disputes, housing projects, and data privacy matters before regulatory authorities. Courts frequently draw analogies from Order I Rule 8 of the CPC to manage multi-party peti- tions in sectors lacking bespoke procedures. Collec-

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