The concept of a class action suit emerged in United States of America in the early 18th century. This course of litigation grew in popularity with an increasing number of claimants seeking restitution and often retribution under Rule 23 of the United States Federal Rules of the Civil Procedure for sundry claims ranging from corporate fraud to air flights delay.
In the aftermath of the collapse of Satyam Computer Services Limited, Clause 217, providing the right of members or creditors to file an application before the NCLT on behalf of the all members/creditors in the event that the management of the company was being conducted in a manner prejudicial to the interests of the company or its members or creditors, assumed greater importance as a redressal mechanism separate from the traditional oppression and mismanagement application. This provision was enacted as Section 245 of the Companies Act, 2013.