Lawyers keep close watch on India’s first class action lawsuit

marksthemoment Section 245 has become a credible legal instrument from a dormant, largely theoretical provision, said Gaurav Dayal, executive partnerat Lakshmikumaran & Sridharan Attorneys.“The outcome will cither empower minority shareholderstoclaim damages orlimit future collective shareholder litigation in India,” hesaid.

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The case began in March 2024, when three shareholders Ankit Jain 3.06% shares), Rina Virendra Jain (0.94%), and Ruchi Jain Hanasoge (0.99%) approached the National Company Law Tribunal (NCLT), Delhi, In the last hearing on II September, the NCLT sought notes on US class action law and adjourned the matter to8 October for conclusion ofarguments. Globally, class action lawsuits are used in the US, Canada,and UK, and ina more limited way in countries like France, Germany, and Japan.