INDIA Law and Practice Contributed by: Aditya Jalan, Urvashi Misra, Bhagya K. Yadav and Sushrut Garg, AZB & Partners
prospect of successfully defending the claim (Order XIII-A Rule 3 (a), CPC).
Under Section 39 the Consumer Protection Act, 2019, consumers may be awarded compensation, including punitive damages, along with remedies like replace- ment or recall of defective products. Damages are in the nature of compensation award- ed to a party that has suffered loss due to a breach of contract. Since such loss is not always precisely quantifiable, the Court may determine a reasonable amount based on the facts and circumstances of each case. 7.4 Class Actions, Mass Claims and Arbitration Class actions are not recognised in arbitration in India, as it is a consensual process limited to parties to the arbitration agreement and excludes representative claims. 7.5 Trends Collective remedies have expanded through sector- specific laws, with Section 245 of the Companies Act enabling shareholders and depositors to pursue class actions for prejudicial conduct. There is growing focus on collective claims in corporate governance, espe- cially under Section 245 of the Companies Act, though jurisprudence is still developing. While the CPC provides for representative suits, the same is not popular in India. Order XI Rule 1 of CPC requires parties to file a list and copies of all documents in their power, possession, control, or custody that are relevant to the dispute, including those adverse to their own case, along with a declaration on oath confirming completeness. Failure to comply has serious consequences. Order XI Rules 3 and 4 of CPC restricts reliance on undisclosed documents unless sufficient cause is shown, and courts may draw adverse inferences or even reject pleadings for non-disclosure ( Sudhir Kumar v Vinay Kumar G . B (2021) 13 SCC 71). 8. Evidence 8.1 Disclosure
7. Mass Claims and Class Actions 7.1 Procedural Mechanisms The principal procedural mechanism is contained in Order I Rule 8 of the CPC, which allows one or more persons to sue or defend on behalf of numerous per- sons having the same interest, subject to the permis- sion of the court. Section 245 of the Companies Act, 2013 allows mem- bers or depositors to file class action suits before the NCLT for prejudicial conduct of company affairs. Section 35 (1)(c) of the Consumer Protection Act, 2019 allows one or more consumers to file complaints on behalf of others with the same interest, enabling col- lective actions. 7.2 Standing Requirements In India, standing to bring or participate in a class generally requires that the claimant form part of the class whose interests are affected. Under Order I Rule 8 of the CPC, representative suits may be instituted, which is essential to allow one or more persons to sue on behalf of a larger group. Under Section 245 of the Companies Act, 2013, class action frameworks require applicants to show preju- dicial conduct, linking standing to a common injury or grievance. Class action participation is enabled through notice and representation, subject to the forum’s permission. 7.3 Relief Indian law recognises a mix of compensatory, injunc- tive, declaratory, and restitutionary reliefs in class actions, depending on the statute invoked. Under the Companies Act, 2013, the NCLT may award compensation or damages against the company and its officials for fraudulent or wrongful acts causing prejudice.
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