The legal complaint, submitted on Tuesday, which was reviewed by the BBC, alleges that defective fuel switches were responsible for the calamity and claims the firms did "nothing" in response despite their knowledge of the inherent dangers posed by the design of the aircraft.
Air India Flight 171, a Boeing 787 heading for London Gatwick, went down shortly after taking off from Ahmedabad, resulting in the deaths of 260 individuals.
Investigators have concentrated on the fuel switches after an initial inquiry revealed that the fuel supply to the engines was interrupted shortly after the aircraft took off.
Earlier statements from the US Federal Aviation Administration (FAA) indicated that the fuel control switches utilized in Boeing aircraft are secure.
The BBC reached out to both Boeing and Honeywell for comments.
Boeing chose not to address the lawsuit specifically. Instead, it referred to the preliminary investigation report by India's Aircraft Accident Investigation Bureau (AAIB) regarding the crash.
The lawsuit claims that both companies were aware of the potential hazards associated with a crash since the inception and marketing of the 787 Dreamliner and its parts.
It referenced a 2018 advisory from the FAA that recommended, but did not require, operators to verify the locking mechanism of the fuel switches to ensure that they would not be unintentionally adjusted, which could lead to a disruption in fuel flow.
In the incident involving Air India Flight 171, the switch was altered from the "run" setting to the "cut-off" position, which impacted the aircraft's thrust, as indicated by the AAIB's preliminary investigation report.
The families asserted that this represented a design "flaw" that "allowed for unintentional interruption of fuel supply and complete loss of necessary thrust" for the aircraft.
They said: "And what actions did Honeywell and Boeing take to avert the unavoidable disaster? None."
The companies also did not inform airlines that the switches needed to be inspected and repaired and failed to provide replacement parts to allow clients to make the necessary installations, according to the lawsuit.
Boeing and Honeywell "remained passive" in light of a mere advisory that suggested inspecting the switches, stated the families, who are represented by the Lanier Law Firm, based in Texas.
A more comprehensive report regarding the incident is anticipated to be released sometime in 2026.
Ultimately, the crash resulted in the fatalities of 229 passengers, 12 crew members, and 19 individuals on the ground.