INDIA Law and Practice Contributed by: Roopali Singh, Yugank Goel, Aayushi Rout and Sushanth Sanjay, Vritti Law Partners
tively, these laws demonstrate that India’s approach is functional rather than formalistic. The choice of mechanism depends on the nature of the harm and the forum best equipped to address it. 2.3 Definition of Collective Redress/Class Actions India does not have a single, uniform definition of “collective redress” or “class action”. While different statutes may differ in their phraseology, they share the unifying principle that a single proceeding may repre- sent and bind multiple persons who share a common or aligned interest. • Representative Suits: While the CPC does not codify a statutory definition of a representative suit, the contours of a representative suit have devel- oped through judicial interpretation. Notably, the Bombay High Court in • The Municipal Council Amravati v Govind Vishnu Sarnaik and Ors , AIR 1976 Bom 401 construed a representative suit as one initiated by one or more persons on their own and on behalf of oth- ers sharing the same interest, or a suit permitted to be defended by one or more persons similarly representing others with a common interest. The Supreme Court clarified in • T.N. Housing Board v T.N. Ganapathy , AIR 1990 SC 642, that “same interest” means either the interest must be common or the plaintiffs must have a common grievance for which they seek redressal. • Statutory Class Actions: Under Section 245 of the Companies Act, a class action is an application by members or depositors on behalf of a class seek- ing to restrain ultra vires acts, declare resolutions void for misstatement, or claim damages from the company, directors, auditors or advisers. The stat- ute prescribes quantitative thresholds to prevent frivolous use but otherwise adopts the representa- tive model of the CPC. • Similarly, Section 53N(4) of the Competition Act permits one or more persons to claim compensa- tion “on behalf of, or for the benefit of, persons having the same interest”. Section 35 (1)(c) of the CPA and Section 18 (2)(e) of the NGT Act fol- low analogous wording. This consistent phras- ing across different statutes shows a deliberate
legislative continuity – all drawing from the CPC prototype. • Public Interest Litigation: While PILs are not “class actions” in the private law sense, they constitute collective redressal under constitutional law. The Supreme Court in Janata Dal v HS Chowdhary , AIR 1993 SC 892, defined PIL as a litigation “for the enforcement of public interest or general interest in which the public or a class of the community have a pecuniary or legal interest”. Unlike statutory class actions, PILs focus on enforcing duties and cor- recting systemic wrongs, rather than on compen- sating affected individuals. Across these frameworks, three key features define collective redress in India: • Representativeness: A claimant or authority acts on behalf of a defined or identifiable group. • Commonality: There must be a shared legal or factual issue or a common grievance. • Binding Effect: The outcome applies to all repre- sented persons, subject to due notice and proce- dural safeguards. 3. Procedure for Bringing Collective Redress/Class Actions 3.1 Mechanisms for Bringing Collective Redress/Class Actions India’s collective redress system is pluralistic – ie, multiple forums and tribunals operate under different statutes; however, it is unified by the representative principle of allowing a few to act on behalf of many. The choice of forum depends on the nature of harm (civil, constitutional, corporate, consumer, or environ- mental) and the applicable governing legal framework. Representative Suits under the Code of Civil Procedure Representative suits under Order I Rule 8 of the CPC are instituted in ordinary civil courts of competent jurisdiction. The court may also, on its own motion, direct that proceedings continue in a representa- tive capacity. Once permission is granted and notice issued, all persons represented are bound by the judgment unless exempted by the court.
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