UNION CARBIDE CORPORATION versus UNION OF INDIA ETC.

Citation: [1989] 3 S.C.R. 128 · Decided: 04-05-1989 · 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)

A 
B 
c 
UNION CARBIDE CORPORATION 
v. 
UNION OF INDIA ETC. 
MAY 4, 1989 
[R.S. PATHAK, CJ, E.S. VENKATARAMIAH, RANGANATH 
MISRA, M.N. VENKATACHALIAH AND N.D. OJHA, JJ.) 
Bhopal Gas Leak Disaster (Registration and Processing of 
claims) Act, 1985: Court' giving reasons for the overall settlement order 
dated February 14, 1989-Compelling duty both judicial and humane to ./'
secure immediate relief to the victims. 
The Bhopal Gas Leak Tragedy that occurred at midnight of 2nd ,_.
December, 1984, by the escape of deadly chemical fumes from the 
appellant's factory was a great industrial disaster and it took an 
immediate toll of 2600 human lives and left tens of thousands of inno-
0 
cent citizens of Bhopal physically affected in various ways. As per the _ 
figures furnished by the Union of India in its amended plaint a total 
number of 2,660 persons suffered agonising and excruciating deaths 
between 30,000 to 40,000 persons sustained serious injuries as a result 
of the said disaster. 
E 
F 
Legal proceedings for the recovery of compensation for the vic-
tims were initiated against the multi-national company first in the U.S. 
Courts and later in Distt. Court at Bhopal in Suit No. 113 of 1986. The 
present appeals concern with the order dated 4th April, 1988 passed by 
the Madhya Pradesh High Court whereby it modified the interlocutory 
order dated 17.12.1987 made by the Dist!. Judge and granted interim J" 
compensation of Rs.250 crores. Both the Union of India and the Union . 
Carbide Corporation have appealed to this Court against that order. 
The Court by its order dated the 14th February, 1989 made in 
these appeals directed that there shall be an overall settlement of the 
, claims in the suit for 470 million U.S. Dollars and terminaion of all civil 
G 
and criminal proceedings. On May 4, 1989 the Court pronounced its 
reasons for its aforesaid order dated 14.2.89thus: 
H 
The Statement of the reasons is not made with any sense of finality 
as to the infallibility of the decision; but with an open mind to be able to 
appreciate any tenable and compelling legal or factual infirmities that 
may be brought out, calling for remedy in review under Article 137 of 
the Constitution. [132C-D) 
128 
·'\. 
UNION CARBIDE v. U .0.1. 
129 
The basic consideration motivating the conclusion of the settle-
ment. was the compelling need for urgent relief. Considerations of ex-
cellence and niceties of legal principles were greatly over-shadowed ·by the 
pressing problems of very survival for a large number of victims. [133A, Cl 
The instant case is one where damages are sought on behair of the 
A 
. ..., victims of a mass disaster, and having regard to the complexities and 
B 
the legal question involved, any person with an unbiased vision would 
not miss the time consuming prospect for the course of the litigation in 
• 
its sojourn through the various courts, both in India . and later in 
~ 
United States. This Court considered it a compelling duty, both judicial 
i 
.-and humane, to secure immediate relief to the victims. In doing so, the 
\_ Court did not enter upon any forbidden ground. What this Court did 
C 
r 
was in continuation of what had already been initiated. [133E-F, H; 134AI 
' 
< 
The range of choice for the Court in regard to the figures was, 
therefore, between the maximum of 426 million U.S. Dollars offered by 
Shri Nariman and the minimum of 500 million U.S. Dollars suggested 
by the Attorney General. [134F-G] 
D 
Having regard to all the circumstances including the prospect of 
delays inherent in the judicial process in India and thereafter in the 
matter of domestication of the decree in the United States for the 
purpose of execution, the Court directed that 470 million U.S. Dollars 
which upon immediate payment and with interest over a reasonable 
period, pending actual distribution amongst the claimants, would 
aggregate very nearly to 500 million U.S. Dollars or its rupee equivalent 
of approximately Rs. 750 crores which the Attorney General had sug-
gested, be made the basis of the Settlement. [l34G-H; 135A-B] 
The Settlement proposals were considered on the premises that 
the Government had the exclusive statutory authority to represent and 
act on behalf of the victims and neither counsel had any reservation as 
to this. The order was also made on the premises that the Bhopal Gas 
Leak Disaster (Registration and Processing of Claims) Act 1985 was a 
valid law. [1358-C] 
There might be different opinio
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