LexCHARAN LAL SAHU ETC. ETC. versus UNION OF INDIA AND ORS.
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CHARAN LAL SAHU ETC. ETC. A v. UNION OF INDIA AND ORS. DECEMBER 22, 1989 [SABYASACHI MUKHARJI, CJ, K.N. SINGH, S. RANGA- B NATHAN, .A.M. AHMADI AND K.N. SAIKIA, JJ.] Constitution of India, 1950: Articles 14, 19 and 21-Bhopal Gas Leak Disaster (Processing of claims) Act, 1985-Whether constitution- ally valid. · Preamble and Articles 38, 39 and 39A-Doctrine of 'parens patriae'-Applicabi/ity of Exercise of sovereign power-Limitations. Articles 21, 48A and 5J(g)-Human righ~tate's obligation to protect-Need for enacting law protecting the constitutional rights of citizens-Evolving standards highlighted by clauses Y and 13 of U.N. Code of Conduct on transnational corporations. Bhopal Gas Leak Disaster (Processing of claims) Act, 1985: Sec- tions 3, 4, 5, 9 and 11-Constitutional validity of: Central Govt. repre- senting victims m suit against multinational company-Govt. holding share in company-Govt. alleged to be joint tort feasor-Whether com- petent to represent victims-Whether principles of natural justice violated. Settlement of claims before court-Pre-decisional and post- decisional notice-Need for-Effect of non-issue of notice. c D E Power conferred on Central Govt. to represent vidims in suit- F Divesting individual rights to legal remedy-Procedure followed- Whether consistent with the Code of Civil Procedure 1908. Interim Compensation-Payment of Precautionary measures- Need for-Guidelines for the future-Immediate relief to victims- Setting up of a Tribunal-Creation of Industrial Disaster Furid- G Mooted. Code of Civil Procedure, 1908: Order 1 Rule 8 and Order 23 Rule JR-Procedure followed under the Bhopal Gas Leak Disaster (Proces- sing of claims) Act, 1985-Central Govt. representing victims in suit- Divesting individual rights to legal remedy-Whether procedure II 597 A B c D 598 SUPREME COURT REPORTS [19M9J Supp. 2 S.C.R. standard and fair-Whether violative of principles of natural justice. Administrative Law-Principles of Natural Justice: Act of Parlia- ment within legislative competence-applicability of the principles. Pre-decisional notice not given-Effect of. Central Government representing victims in a suit against a multinational company-Govt. having shares in company-Alleged tort-feasor-Whether competent to represent victims-Doctrine that no man shall be judge of his own cause-Doctrine of necessity-Doctrine of 'de facto validity'-Doctrine of bona fide representation-Applicability of. Statutory construction: Constructive intuition approach-statute to be read purposefully and meaningfully-Regard to be had to ihe spirit of the statute and the mischief intended to be cured by it. Law of Torts: Bhopal Gas Leak Disaster (Processing of claims) Act, 1985-Grant of interim relief to the victims-Whether inherent in the Act and the Scheme framed thereunder-Liability of tort-feasor- Whether limited to civil liability to compensation-whether includes cri- minal liability to punitive damages also. Union Carbide (India) Ltd. (UCIL) is a subsidiary of Union Carbide Corporation (UCC), a New York Corporation. UCIL was E incorporated in India in 1954. 50.99% of its shareholding was with UCC and 22% of the shares were held by Life Insurance Corporation of India and Unit Trust of India. UCIL owned a chemical plant in Bhopalfor the manufacture of pesticides using Methyl Isocyanate (MIC) a highly toxic gas. F On the night between 2nd and 3rd December, J 984, there was a massive escape of lethal gas from the MIC Storage tank at the Bhopal plant resulting in the tragic death of about 3,000 people. Thousands of people suffered injuries. The environment also got polluted, badly affecting the flora and the fauna. G On behalf of the victims, many suits were filed in various District -: Courts in the United States of America. All such suits were consolidated by the Judicial Panel on Multi-District Litigation and were assigned to the U.S. District Court, Southern District of New York and Judge Keenan was the Presiding Judge throughout. Later, the legal battle shilled to Indian Courts, as it could not proceed in the U.S. Courts, on H the ground of forum non conveniens. C.l SAHU v. U.0.1 599 Meanwhile, the Bhopal Gas Leak Disaster (Processing of claims) Ac( 1985 was passed by the Government of India with a view to secure that the claims arising out of or connected with the Bhopal gas leak disaster were dealt with speedily, effectively and equitably. Union of Ind
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