INDIA Law and Practice Contributed by: Roopali Singh, Yugank Goel, Aayushi Rout and Sushanth Sanjay, Vritti Law Partners
The procedural essence is flexibility and applies across diverse civil matters, including property dis- putes, contract enforcement, trust administration, or other collective civil matters. It forms the procedural foundation on which modern, collective action frame-
it cannot revisit the CCI’s substantive findings on vio- lations under the Competition Act. The procedure fol- lows Order I Rule 8 of the CPC, allowing one or more applicants to represent others with common interest. The NCLAT also has the power to approve settlements or apportion compensation among class members. Consumer Protection Act The CPA provides both adjudicatory and regulatory routes for collective redress. • Adjudication Mechanism: Consumer complaints are decided by a three-tier structure of Consumer Disputes Redressal Commissions (district, state and national levels), depending on the aggregate value of claims. • Regulatory Mechanism: The CCPA serves as a regulatory body empowered under Section 18 to “protect, promote and enforce rights of consum- ers as a class”, shifting from individual to insti- tutional enforcement. The process begins with a preliminary inquiry to establish a prima facie case, followed by an investigation by the Director General, if necessary. The CCPA has the statu- tory authority to order the direct recall of goods, withdrawal of unsafe services, reimbursement or compensation to consumers, and prohibit unfair or prejudicial practices. In case of false or misleading advertisements, the CCPA can impose penalties up to INR1,000,000 for the first contraventions and INR5,000,000 for repeat offenders. It can also prohibit endorsers from promoting products for up to one year, extendable to three years for repeated violations. Collectively, these powers provide a comprehensive mix of judicial and administrative tools, enabling efficient and comprehensive class action enforcement. National Green Tribunal Act The NGT operates through five regional benches, act- ing as specialised environmental forums with expan- sive suo moto powers for environmental disputes. The Supreme Court has affirmed NGT’s suo moto powers, allowing it to take up cases on its own initiative in Mantri Techzone Private Limited v Forward Founda- tion , 2019 18 SCC 494. Under Section 22 of the NGT Act, the appellate recourse from an order passed by the NGT lies directly before the Supreme Court,
works are constructed. Public Interest Litigation
A PIL petitioner does not need to demonstrate per- sonal injury but must act bona fide in the public interest. Proceedings can commence upon a formal petition or even a letter addressed to the court, as recognised in S.P. Gupta v Union of India , AIR 1982 SC 149, reflecting emphasis on substantive justice over procedural formalities. The courts adopt a non- adversarial, investigative approach, often appointing commissioners or expert committees for fact-finding. The court’s continuing mandamus jurisdiction ena- bles long-term monitoring and implementation of PIL orders. Environmental cases like M. C. Mehta v Union of India , AIR 1988 SC 1037, filed decades ago, con- tinue to remain active, allowing the court to address evolving circumstances and ensure compliance with Under the Companies Act, collective actions are brought before the NCLT. Rule 85 of the NCLT Rules requires assessment of whether the class action suit is more suitable than individual suits, whether common questions of law or fact exist in the class, and wheth- er the representative parties will protect the interest of the class. Such actions may be brought against the company, its directors, auditors, or advisers for acts prejudicial to members’ or depositors’ interests. Reliefs include injunctions restraining ultra vires acts, declarations voiding resolutions, and damages or compensation. Banks and financial institutions are excluded from this class action regime. Competition Act Under the Competition Act, collective competition claims are adjudicated by the NCLAT. Applications may be filed individually or in a representative capac- ity, but only after the CCI has made a final finding of contravention. The NCLAT’s inquiry is limited to determining eligibility and quantum of compensation; remedial orders. Companies Act
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