The Bhopal Gas Tragedy of 1984 was the world's worst industrial disaster, killing over 2,000 people and injuring over 600,000. A leak of toxic gas from a Union Carbide pesticide plant in Bhopal, India exposed thousands to deadly chemicals. Victims and their families filed lawsuits in the United States and India seeking compensation. After years of litigation, the Indian Supreme Court ordered Union Carbide to pay $470 million as full and final settlement for all past, present, and future victim claims from the Bhopal disaster. The case highlighted issues of corporate responsibility, environmental safety standards, and adequate compensation for victims of industrial accidents.

3.  Famously known as “BHOPAL GAS LEAK DISASTER CASE”
FACTS :
 UCCIL, Bhopal, MP – Subsidiary of – UCC, U.S.A.
 Midnight – December 2/3 , 1984 – leakage of MIC- from UCCIL
 World’s worst industrial disaster – 2260 dead and 6 lakks of ppl suffered
from serious injuries with variety of complications.

4.  GOI promulgated an ordinance entitled “The Bhopal Gas Leak Disaster (Processing of
Claims) Act, 1985 and filed on behalf of the victims, a suit in U.S. District Court, New York.
 Several petitions filed by the victims and legal representatives of the deceased.
 U.S. District Court (through Judge John F. Keenan) DISMISSED all the petitions
on the ground “forum non-conveniens”
&
directed UCC to pay $ 5 million to victims as immediate relief.
 On appeal by UOI
before the United States Of Appeals for the Second Circuit
CASE DISMISSED!

5.  Then, UOI filed a suit (UCC V. UOI) in District Court of Bhopal (MP, India)
claiming $3.3 billion (Rs.3900 crores) as compensation
 District court (headed by M.W. Deo) ordered UCC to pay interim relief of $270
million (Rs. 350 crores) to the victims.
 UCC filed a civil revision petition before High Court of Madhya Pradesh,
which reduced the amount from Rs.350 crores to Rs.250 crores
 UCC was reported to have decided to go on appeal against the interim relief and
devising a new strategy of outmanoeurving the Indian Government by a direct
settlement with the Gas Victims.
 Against this move by the UCC at the plea of the UOI, the District Sessions Court,
Bhopal passed an interim order directing UCC not to make any compromise or
settlement with any individual until further orders.
 Later both the parties preferred appeals before the Supreme Court on different
issues.

6. ISSUES:
- Liability of parent company(UCC) for the torts of its subsidiary company
abroad(UCIL)
- Responsibility of the home state (USA) for hazardous activities of UCC’s
subsidiary abroad (UCUL in India)
- Responsibility of host state (India) in enforcing safety standards for
protection of life and environment
&
- Extent of liability to the victims for their rehabilitation in the event if
accidents.

7. DECISION:
SC (Full Bench) vide its order dt. 14/2/89 – directed UCC to pay US $ 470 million (₹.
750 crores approx.) towards compensation to victims as
“full and final settlement”
in satisfaction of all the “past, present and future claims”
Accepted by both parties
The entire amount was ordered to be paid by March 31, 1989 (which was paid then)
The court, by exercising extraordinary jurisdiction quashed all proceedings civil,
criminal or contempt of Court etc., against the UCC
Further Stressed the need to evolve a national policy to protect national interests from
such ultra hazardous pursuits of economic gains.