What are class actions, why are such lawsuits on the rise in India?

News: Class action lawsuits are gaining prominence in India following recent cases against Ola Electric Ltd and Jindal Poly Films Ltd. Also, CCPA has issued show cause notice to Ola Electric after several complaints were received against it.

1. Class Action: It is a legal recourse in which a group of people with common grievance file a single case against the party, rather than separate lawsuits.

2. It can be filed for various purposes like reversing illegal activities, stopping harmful decisions, or demanding compensation for damages.

3. Class action provisions were first introduced in India under the Code of Civil Procedure, 1908. Whereas class actions in corporate governance were formally introduced by the Companies Act in 2013.

4. These cases are adjudicated by National Company Law Tribunal (NCLT).

5. Central Consumer Protection Authority (CCPA): It is established under the provisions of the Consumer Protection Act, 2019 to protect and enforce the rights of the consumers. It also regulated unfair trade practices and false or misleading advertisements.