What are the law relating to the class action suit in India?

What are the law relating to the class action suit in India?

Consumer Protection Acts India has now gone on to overhaul its whole consumer law. The Consumer Protection Act, 2019 has recently come into force. Section 17 of this 2019 Act is concerning where the Central Consumer Protection Authority now has the power to initiate class actions suit on behalf of the consumers.

When can class action suit filed?

Eligible entities according to the Company’s Act, 2013 A class action suit can be filed against following persons to claim damages or compensation or demand any other suitable action from or against: the company or its directors for any fraudulent, unlawful or wrongful act or omission.

Who can file a class action suit and against whom?

Sections 245 and 246 of the Act contain these provisions. Under these, class-action suits may be filed by investors if they are of the opinion that the affairs of the company are being conducted in a manner prejudicial to the interest of the company, its shareholders or depositors.

How does a class action suit work?

How Do Class Action Lawsuits Work? During a class action lawsuit, the group of harmed people will assign their lead plaintiff to file the lawsuit on behalf of all party members. This lead plaintiff can also work alongside their lawyer during litigation and can communicate updates back to the entire group.

Who pays in a class action lawsuit?

Usually, the attorneys receive a percentage of the total compensation awarded to members of the class. They also take any expenses they incurred from this fund before dividing it among the class members. In this way, all plaintiffs pay for legal fees in the case, but they share the costs.

What is the purpose of a class action lawsuit?

Class action lawsuits provide harmed people with many benefits, such as allowing large groups of similarly affected people to come together and file a lawsuit against the same company. This provides strength in numbers for all of the people harmed, typically by large corporations, or businesses that have a vast reach.

How long do class actions take?

How long does a class action take? Generally, most class actions tend to take between one and three years to resolve, although this can vary depending on the circumstances of individual claims.

What should be the number of members required to apply for a class action suit by a company without any share capital?

Number of members required to file class-action are: In case of company not having share capital, not less than one-fifth of the total number of its members.

What are the provisions of Indian Companies Act 2013 on class action?

A class action allows a number of claimants with a common grievance against a company to file a lawsuit against it. Claimants can pool their resources, share attorneys’ services and save the time and costs of litigation.

What is an advantage to filing a class-action lawsuit?