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UNION CARBIDE CORPORATION versus UNION OF INDIA AND OTHERS, ETC.

Citation: [1989] 1 S.C.R. 730 · Decided: 15-02-1989 · Supreme Court of India · Bench: R.S. PATHAK, E.S. VENKATARAMIAH, RANGANATH MISRA, M.N. VENKATACHALIAH, N.D. OJHA · Disposal: Directions issued

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Judgment (excerpt)

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B 
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D 
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UNION CARBIDE CORPORATION 
v. 
UNION OF INDIA AND 01HERS, ETC. 
FEBRUARY 14-15, 1989 
[R.S. PATHAK, CJ, E.S. VENKATARAMIAH, 
RANGANATH MISRA, M.N. VENKATACHALIAH AND 
N.D. OJHA, JJ.] 
Having carefully considered the facts and circumstances of the 
case, the mass of data placed before It, the material relatin1; to the 
proceedings in the Courts in the U.S.A., the offers and counter-offers 
made between the parties at different stages during the varnous pro-
ceedings, the complex issues of law and fact raised before it: s1nd the 
submissions made thereon, and in particular, the enormity ~if human 
suffering occasioned by the Bhopal Gas Leak Disaster and the pressing 
urgency to provide Immediate and substantial relief to victims of the 
disaster, the Court was of opinion that the case was fit for an overall 
settlement between the parties covering all litigations, claims, rights 
and liabilities related to and arising out of the Disaster and HELD that 
it was just, equitable and reasonable to order as follows: 
(1) That the Union Carbide Corporation shall, on or before 
23.3.1989, pay a sum of U.S. Dollars 470 millions to the Union of 
India as claimant and for the benefit of all victims of the Bhopal 
Gas Leak Disaster under the Bhopal Gas Leak Disaster (IRE'l!istra-
tlon and processing of claims) Scheme 1985 and not a1: fines, 
penalties or punitive damages, in full settlement of all •claims, 
rights and liabilities related to and arising out of the Bhopal Gas 
Leak Disaster; [733F-G] 
(2) That all civil proceedings related to and arising out of the 
Disaster shall stand transferred to this Court and shall stand con-
eluded in terms of the settlement, and all criminal proe<!edlngs 
related to and arising out of the disaster shall stand quashed 
wherever pending; [732F-G I 
(3) That upon fuU payment of the sum referred to above: 
(a) The Union oflndia and the State of Madhya Pradesh shall 
take all steps which may in future become necessary in order 
to implement and give effect to this order, including but not 
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UNION CARBIDE CORPN. v. U.0.1. 
731 
limited to ensuring, that any suits, claims or civil or criminal 
. 
/ 
complaints which may be tiled in future against any Corpora-
tion, Company or person referred to in the Settlement are 
defended by them and disposed of in terms of this order; [ 734 
A-BJ 
(b) Any such suits, claims or civil or criminal proceedings 
tiled or to be filed before any court or authority are hereby 
enjoined and shall not be proceeded with before such court or 
authority except for dismissal or quashing in terms of this 
order; and [734C] 
(4) That upon full payment in accordance with the directions 
issued by the Court, 
(a) The undertaking given by Union Carbide Corporation 
pursuant to the order dated 30.11.1986. in the District Court, 
Bhopal shall stand discharged, and all orders passed in Suit 
No. 1113 of 1986 and/or in revision therefrom shall also stand· 
discharged; [7340] 
(b) Any action for contempt initiated against counsel or 
parties relating to this case and arising out of proceedings in 
the courts below shall be treated as dropped. [734E] 
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B 
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CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3187-
E 
88of 1988 . 
From the Judgment and Order dated 4.4.1983 of the Madhya 
. Pradesh High Court in C.R. No. 26 of 1988 . 
...__.,--f -
AND VICE VERSA 
F 
(WITH S.L.P. (CIVIL) No. 13080of 1988). 
K. Parasaran, Attorney General, F.S. Nariman, Anil B. Divan, 
B.R. Zaiwala, Gopal Subramaniam, V.P. Sarthi, J.B. Dadachanji, 
Vi jay Gupta, Ms. Anjali K. Verma, Sumeet Kachwaha, Ashok Sagar, 
D.N. Misra, S.C. Sharma, 0.C. Mathur, A. Subhashini, S.K. 
Gambhir, D.S. Shastri and Arun Madan for the appearing parties. 
Vibhuri Jha, Anil K. Nauriya, Ms. _Aruna Mathur, A. Mariar-
putham and C.L. Sahu for the Interveners. 
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SUPREME COURT REPORTS 
[1989] 1 S.C.R. 
The following Order of the Court was delivered: · 
ORDER 
Having given our careful consideration for these several days to 
the facts and circumstances of the case placed before us by the parties 
B 
in these proceedings, including the pleadings of the parties, the mass 
of data placed before us, the material relating to the proceedings in the 
Courts in the United States of America, the offers and count1er-offers 
made between the parties at different stages during the various pro-
ceedings, as well as the complex issues of law and fa

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