M. C. MEHTA V. UNION OF INDIA

1. M. C. MEHTA V. UNION OF INDIA
A PRESENTATION BY –
DAKSH KAUSHIK
BBALLB 2B
ENROLLMENT NO. - 42925503518

2. COURT - Supreme Court of India
FULL CASE NAME - M.C. Mehta Vs. Union of India (UOI) and Ors.
DECIDED - December 20 1986
CITATION(S) - 1987 SCR (1) 819
CASE OPINIONS - Majority C. J. Bhagwati
LAWS APPLIED - Articles 12 and 21 of the Constitution of India

3. FACTS OF THE CASE
• M.C. Mehta v. Union of India originated in the aftermath of oleum gas leak from Shriram Food and
Fertilisers Ltd. complex at Delhi.
• This gas leak occurred soon after the infamous Bhopal gas leak and created a lot of panic in Delhi.
• One person died in the incident and few were hospitalized.
• The case lays down the principle of absolute liability and the concept of deep pockets.
• PRINCIPLE OF ABSOLUTE LIABILITY –
In the year 1868, the principle of strict liability
states that any person who keeps hazardous
substances on his premises will be held
responsible if such substances escape the premises
and causes any damage.
• CONCEPT OF DEEP POCKETS
Deep pocket is an American slang term; it usually
means "extensive financial wealth or resources". It
is usually used in reference to big companies or
organizations, although it can be used in reference
to wealthy individuals.

4. Deep pocket is a concept often used in the law and economics of tort law. It refers to the idea that
the risk of an activity should be borne by a person who is in a relatiely good position to handle it. This can
be achieved by either spreading the risk over a large number of risk-bearers (usually by means
of insurance), or by imposing it on a person who is relatively risk-neutral. The latter is often assumed to be
the case for wealthy individuals or large corporations, who are referred to as having "deep pockets", since
their wealth will not be affected very strongly if the risk materializes. For example, a deep-pocket argument
might, among other arguments, be used to justify product liability, as producers with "deep pockets" will
normally be better able to accommodate the risk of damages than individual consumers not endowed with
"deep pockets".
A variation on the term refers to the special subtype of frivolous litigation where plaintiffs target wealthy or
corporate defendants for little other reason than them having high resources. These cases involve plaintiffs
who have suffered genuine damages, but the true culpability lies squarely with an individual or small entity
who has very little money that could be collected if the suit was won. Instead, the plaintiff targets the
nearest marginally related large corporation or wealthy defendant, often with a weak accusation
of negligence. A popular example is a person being shot by a criminal, and suing the manufacturer of the
firearm instead of their attacker. Sometimes legislation is passed to prevent such lawsuits, such as
the Protection of Lawful Commerce in Arms Act.
DEEP POCKET IN LAW AND ECONOMICS

5. PRELIMINARY OBJECTION OF THE DEFENDANTS
• There was only one preliminary objection filed by the counsel for the defendant, and this was that the
Court should not proceed to decide these constitutional issues since there was no claim for
compensation originally made in the writ petition and these issues could not be said to arise on the
writ petition.
• However, the Court, while rejecting this objection, said that though it is undoubtedly true that the
petitioner could have applied for amendment of the writ petition so as to include a claim for
compensation but merely because he did not do so, the applications for compensation cannot be
thrown out.
• These applications for compensation are for enforcement of the fundamental right to life enshrined in
Article 21 of the Constitution and while dealing with such applications we cannot adopt a hyper-
technical approach which would defeat the ends of justice.

6. ORDER OF THE COURT
• The Supreme Court made the following observation: Since we are not deciding the question as to
whether Shriram is an authority within the meaning of Article 12 so as to be subjected to the discipline
of the fundamental right under Article 21, we do not think it would be justified in setting up a special
machinery for investigation of the claims for compensation made by those who allege that they have
been the victims of oleum gas escape.
• But we would direct that Delhi Legal Aid and Advice Board to take up the cases of all those who claim
to have suffered on account of oleum gas and to file actions on their behalf in the appropriate court for
claiming compensation against Shriram.
• Such actions claiming compensation may be filed by the Delhi Legal Aid and Advice Board within two
months from today and the Delhi Administration is directed to provide the necessary funds to the Delhi
Legal Aid and Advice Board for the purpose of filing and prosecuting such actions.
• Thus the High Court was directed to nominate one or more Judges as may be necessary for the purpose
of trying such actions so that they may be expeditiously disposed of.

7. REFERENCES
• ^ "deep pockets". The Free Dictionary.
idioms.thefreedictionary.com. Retrieved 29
September 2016.
• Guido Calabresi: The Cost of Accidents: A Legal and
Economic Analysis, Yale University Press, 1970.
• "M.C. Mehta And Anr vs Union Of India & Ors on 20
December, 1986". Indian Kanoon. Retrieved 22
June 2012.