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Class Action Suit- A new weapon
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Updated On:
28/06/2014
A class action or a class suit is a lawsuit that allows a large number of people with a common interest in a matter to sue or be sued as a group. The concept is common in developed countries such as the US, UK and Singapore but has till now, not existed in the Indian law. The provision of class suits gives stakeholders an edge in retrenching their rights:
- It brings together people with common interest on a common platform, increasing the efficiency of the legal process and lowering the costs of litigation.
- It aggregates large number of complaints together, making the cost and effort involved in a legal process worthwhile as amounts to be recovered by each aggrieved individual may be too small to justify solo action.
- The threat of class action tends to enhance sense of responsibility and diligence of the defendant towards the interest of stakeholders.
- A class action avoids situations where different court rulings could create "incompatible standards" of conduct for the defendant to follow.
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