Asked September 18, 2013

Class Action suit

  • 1 Answer

What is meant by class action suit?

Answer 1

Class action is simply filing a law suit in a larger group instead of individual suits where there are numerous persons having the same interest in that suit. Different regulations may have a different requirement for filing it, but generally more than one person can file it. 

It was in news when the government filed a class action suit against Nestle India, the manufacturer of Maggi noodles, seeking about Rs 640 crore in damages for alleged unfair trade practices, false labelling and misleading advertisements.

The government - Nestle legal battle is the first instance of a class action suit filed in the country by the Department of Consumer Affairs, Ministry of Consumer Affairs, Food & Public Distribution, citing the Consumer Protection Act, 1986.

Statutory Provisions Under Different Laws in India

  • A class action suit can be filed under Section 91, Order 1 Rule 8 of Civil Procedure Code, 1908. 
  • The new section in Companies Act, 2013 requires at least 100 members or depositors to file a class action under Section 245.
  • A class action suit can be filed under Section 12 (1) (c) of the Consumer Protection Act 1986.
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