The concept of class action suits or commonly known as representative suits are dealt with under Order 1 Rule 8 the of Code of Civil Procedure 1908, Order 1 Rule 8 of the Code provides that when there are number of persons similarly interested in a suit, one or more of them can with the permission of the court or upon a direction from the court, sue or be sued on behalf of themselves or may defend such suit on behalf of or for the benefit of all persons so interested.
Other statutes that accommodate class actions include –
Companies Act 2013 more particularly ss 245 and 37, Competition Act 2002, s 53(4), Consumer Protection Act 1986 s (12(1)(c) and even the Industrial Disputes Act 1947 makes room for collective bargaining by workers (Employees) represented by a Union. Recently, the Government of India has notified the threshold limits of members or depositors to file a class action suit under Section 245 of the Companies Act 1956.