Supreme Court clarifies criteria for class action suit

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The Supreme Court overruled a judgment passed by the National Consumer Disputes Redressal Commission (NCDRC) in holding that in class action suits, the oneness of the interest is akin to a common grievance against the same person.

In Anjum Hussain & Ors v Intellicity Business Park Pvt Ltd & Ors case, 44 persons including Anjum Hussain had booked office space in a project by Intellicity Business Park consisting of residential units, shops and offices. As the builder failed to deliver possession in four years, they approached the NCDRC seeking a refund of the amounts paid to the builder along with interest and compensation.

They also filed an application seeking permission under section 12(1)(c) of the Consumer Protection Act to institute this complaint on behalf of all such buyers of commercial units.

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The dispute digest is compiled by Bhasin & Co, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in. Readers should not act on the basis of this information without seeking professional legal advice.

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