Class Action

A class action is a lawsuit in which one or more members of a large group, or class, of individuals or other entities sue on behalf of the entire class. The courts must find that the claims of the class members contain questions of law or fact in common before the lawsuit can proceed as a class action. A class action is also known as “representative action” or “collective action”. In India, the filing of representative actions is recognised under the Code of Civil Procedure 1908 (CPC). Order 1 Rule 8, of the CPC has another provision relating to collective action. Section 91 empowers two or more persons to file a suit with the permission of the court to seek a declaration and injunction or any such other relief against public nuisance or other wrongful act affecting, or likely to affect the public. Such an action can be brought even if no special damage has been caused to such persons by reason of such public nuisance or other wrongful act. Similar provisions allowing parties to represent other aggrieved persons in a representative capacity are set out in the:

·         Consumer Protection Act 1986 (CPA).

·         Industrial Disputes Act 1947 (IDA).

·         Competition Act 2002 (Competition Act).

Akin to the provision relating to representative actions, the Indian Courts have (in writ jurisdiction) evolved a branch of jurisprudence known as “Public Interest Litigation” or “Social Interest Litigation” (PILs).