The Fate of Class Action Suits in India: Then & Now?

[2014] 4 Company Law Journal (25)

11 Pages Posted: 17 May 2017

Date Written: 2014


The contemporary deliberation on the comprehensive overhaul of corporate law and practice in India has triggered an inevitable necessitation for the Indian legal fraternity to ponder over the novel challenges and opportunities that the Companies Act, 2013 is set to offer.

This essay is to minutely scrutinize the introduction of statutory Class Action in India & begins with the economic analysis of corporate law to provide the multifarious problems that the minority shareholders face and delves into a critique of the Foss v. Harbottle Rule. It then moves on to recognize Derivative Actions as an exception to the said rule. Clarifying the pre-existence of Derivative and Representative Suits in India as a common law heritage, this paper endeavours to enlist the evolution that this very conception went through, thereby justifying the rationale of its rarity in terms of litigation practice in India. It then focuses on to analyze the basis that elicited the advent of statutory Class Action in India.

Making available the panoramic view of Section 245 of the Companies Act, 2013 read in lines with the Rules for Chapter XVI and the procedure thereof, a look at the structural metamorphosis of Class Action in India is indispensable. The latter half is a critical scrutiny of the dilemmas that this new Indian incarnation of Class Action is set to face in the time to come so as to settle the unsettled domain of Class Action litigation in India.

Keywords: Class Action, Derivative Action, Representative Suits, Section 245

Suggested Citation

Pandya, Param, The Fate of Class Action Suits in India: Then & Now? (2014). [2014] 4 Company Law Journal (25). Available at SSRN:

Param Pandya (Contact Author)

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