1. Civil Liability for Nuclear Damage
Act 2010
5 November 2014
Khaitan & Co.
Advocates, Solicitors, Notaries, Patent & Trademark Attorneys

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NUCLEAR LIABILITY REGIME (CONTD.)
India signed the Convention on Supplementary
Compensation (CSC): October 2010
• Conformity of national law with Annex required
• Being a signatory to the Convention on Nuclear Safety 1994
(India already a signatory)
Pre-requisites for ratification
• Presidential Assent given in September 2010
• Rules framed in November 2011
Civil Liability for Nuclear Damage Act 2010
2

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INTERNATIONAL NUCLEAR LIABILITY REGIME
(CONTD.)
3
• ‘nuclear damage’
• caused by a ‘nuclear incident’
• occurring in a ‘nuclear installation’
• or occurring in the course of transport of ‘nuclear
material’ to or from such installation
Liability
for what?
• Loss of life or personal injury
• loss of or damage to property
• resulting from radioactive properties of ‘nuclear fuel’
or ‘radioactive products or waste’ in a nuclear
installation
• resulting from radioactive properties of ‘nuclear fuel’
or ‘radioactive products or waste’ of nuclear material
coming from, originating in or sent to such installation
What is
nuclear
damage?

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INTERNATIONAL NUCLEAR LIABILITY REGIME
(CONTD.)
4
Exclusive
liability of
operator
Strict liability
of operator
Liability
limited in
amount
Liability
limited in
time
Authorities
with
exclusive
jurisdiction

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CIVIL LIABILITY FOR NUCLEAR DAMAGE ACT 2010
(CONTD.)
5
• The liability of the
operator of the
nuclear installation
shall be strict and
based on the
principle of no-fault
liability
Strict
liability of
operator

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INTERNATIONAL NUCLEAR LIABILITY REGIME
(CONTD.)
6
Exclusive
liability of
operator
Strict liability
of operator
Liability
limited in
amount
Liability
limited in
time
Authorities
with
exclusive
jurisdiction

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CIVIL LIABILITY FOR NUCLEAR DAMAGE ACT 2010
(CONTD.)
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• Rs 15 billion in respect of nuclear
reactors of 10MW or more
• Rs 3 billion in respect of spent fuel
reprocessing plants
• Rs 1 billion in respect of research
reactors of less than 10MW, fuel cycle
facilities etc
Operator
liability
limited in
amount
• Maximum amount of liability in respect
of each nuclear incident shall be the
rupee equivalent of SDR 300 million
• Liability exceeding operator’s liability to
the account of Central Government
Overall
cap on
liability
amount

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INTERNATIONAL NUCLEAR LIABILITY REGIME
(CONTD.)
8
Exclusive
liability of
operator
Strict liability
of operator
Liability
limited in
amount
Liability
limited in
time
Authorities
with
exclusive
jurisdiction

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CIVIL LIABILITY FOR NUCLEAR DAMAGE ACT 2010
(CONTD.)
9
• Claim must be made within
specified period from date of
nuclear incident:
• 10 years in case of damage to
property
• 20 years in case of personal injury
• However subject to the above,
claim must be lodged within 3 years
from date of knowledge of nuclear
damage
Operator
liability
limited in
time

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INTERNATIONAL NUCLEAR LIABILITY REGIME
(CONTD.)
10
Exclusive
liability of
operator
Strict liability
of operator
Liability
limited in
amount
Liability
limited in
time
Authorities
with
exclusive
jurisdiction

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CIVIL LIABILITY FOR NUCLEAR DAMAGE ACT 2010
(CONTD.)
11
• Claims Commissioners
• Nuclear Damage Claims Commission
• Commissioner/Commission will be vested
with powers as a civil court in matters
relating to evidence
• Jurisdiction of other courts (except High
Courts and Supreme Court exercising writ
jurisdiction) barred; no injunction to be
granted by any court or authority in
respect of any action taken in pursuance
of power conferred under the Act
Exclusive
jurisdiction
of
authorities
under the
Act

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INTERNATIONAL NUCLEAR LIABILITY REGIME
(CONTD.)
12
Exclusive
liability of
operator
Strict liability
of operator
Liability
limited in
amount
Liability
limited in
time
Authorities
with
exclusive
jurisdiction

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CIVIL LIABILITY FOR NUCLEAR DAMAGE ACT 2010
(CONTD.)
13
• No civil court (except the Supreme Court
and the High Courts) to have jurisdiction
to entertain any proceedings in respect of
any matter which the Commissioner or the
Commission is empowered to adjudicate
under the Act (section 35)
• Provisions of the Act will be in addition to
– and not in derogation of – any other law
then in force and they do not exempt the
operator from any proceeding which might
be instituted apart from the Act against it
– tortious claims
Act a
complete
code on
liability for
nuclear
damage?

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INTERNATIONAL NUCLEAR LIABILITY REGIME
(CONTD.)
14
Exclusive
liability of
operator
Strict liability
of operator
Liability
limited in
amount
Liability
limited in
time
Authorities
with
exclusive
jurisdiction

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OPERATOR’S RIGHT OF RECOURSE
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• If such right is expressly
provided in the contract; or
• If nuclear incident resulted as a
consequence of act of supplier
or his employee including supply
of equipment or material with
patent or latent defects or sub-
standard services; or
• Act or omission done with intent
to cause nuclear damage
Operator’s
right of
recourse

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OPERATOR’S RIGHT OF RECOURSE (CONTD.)
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• The case of the tail wagging the dog? Rules vs. Act
• Supplier will be liable for an amount equal to the
contract value or operator’s liability, whichever is less;
however this limitation available only if right of
recourse specifically provided for in the contract
• If right of recourse not specified in the contract,
suppliers’ liability will extend to the entire amount of
operator’s liability
• Recourse available for the period of 5 years or
product liability period specified in contract,
whichever is longer
Do the
Rules
provide
relief?

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OPERATOR’S RIGHT OF RECOURSE (CONTD.)
17
• Supplier could possibly limit liability
under contract
• The same limitation could also apply
to claims under tort made by the
operator – however this is not free
from doubt
• Supplier could still be liable to claims
under torts from third parties i.e.
affected persons
Supplier’s
ability to
limit
liability?

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POINTS TO PONDER
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Limited utility of CSC provisions: in case of inconsistency in obligations
under international conventions and domestic law, the latter will prevail
Proceedings under the Act may not be the only remedy available
Suppliers could be subjected to unlimited liability in amount
Suppliers’ liability over long periods of time
Long and tedious legal proceedings hinging on questions of fact
Insurance coverage will be dearer since coverage for same risks will be
sought by operator as well as suppliers

19. THANK YOU