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UNION CARBIDE CORPORATION ETC. ETC. vs. UNION OF INDIA ETC. ETC

SCR Citation: [1991] Supp. (1) S.C.R. 251
Year/Volume: 1991/ Supp. (1)
Date of Judgment: 03 October 1991
Petitioner: UNION CARBIDE CORPORATION ETC. ETC.
Disposal Nature: Petition Disposed Off
Neutral Citation: 1991 INSC 250
Judgment Delivered by: Hon'ble Mr. Justice Ranganath Misra,Hon'ble Mr. Justice A.M. Ahmadi
Respondent: UNION OF INDIA ETC. ETC
Case Type: CIVIL MISCELLANEOUS PETITION /29377/1988
Order/Judgment: Judgment
1. Headnote

Bhopal Gas Disaster (Processing of Claims) Act, 1985: Sections 3, 4, 9: Settlement of claims before the Apex Court-Not afford- ing 'Fairness Hearing-Non-incorporation of re-opener clause-Whether vitiates the settlement-Review of settlement If set aside by Court-Whether Court has inherent jurisdiction to order restitution of the fund to the company Review proceedings-Court would not refuse to afford opportunity to parties on rigid technical grounds-In case funds found inadequate in future Whether Union of India as Welfare State to make good the deficiency Whether settlement could be set aside on mere possibility that medical D documentation and categorisation were faulty and figures of various kinds of injuries and disablement were undependable Liability of tort-feasor Award of compensation To be proportionate to economic superiority of the offender. 

Constitution of India, 1950:

Article 136, 137, 139-A, 142, 145: Inherent jurisdiction under Articles 136 and 142 to withdraw or transfer and finally dispose of the main suits and pending Criminal proceedings in the course of hearing of appeals arising out of interlocutory orders in suits Whether taken away by Article 139. A-Words 'Cause or matter' appearing in Article 142-Meaning and scope of-Apex Court's power to quash criminal proceedings-Court's order recording settlement between parties-Such agreement if opposed to public policy-Whether void and order of settlement liable to be set aside-Special leave jurisdiction Nature and scope of Main object-To meet ends of justice-Even specific provision for appeal under the Constitution of other laws not to limit the jurisdiction Stifling of prosecution doctrine'-Whether attracted where the motive is to drop Criminal as also Civil proceedings-Doctrine of restitution Whether applicable to appeals under Article136 Conferment of immunity from criminal proceedings Whether legislative function Whether amounts to preferential treatment-Settlement of claims recorded-Review of Whether settlement could be set aside on ground of insufficiency of settlement fund-In the event of funds being found insufficient to meet the compensation determined Whether Union of India as Welfare State to make good the deficiency. Civil Procedure Code, 1908:

Order XXIII, Rule 3B; Sections 112 and 114: Settlement recorded by B Court Principles of natural justice Persons whose interests affected not made co-nominee parties Order recording settlement not preceded by notice to such persons Whether renders the proceedings void Doctrine of restitution Applicability of.

Law of Torts:

 Mass tort action Court assisted settlement Non-affording of pre- settlement 'Faimess Hearing and non-incorporation of 'reopener clanse in the settlement Whether vitiate the settlement Assessment of once and for all damages in personal injury actions Unforeseen but likely future manifestation of the injury An important factor to be kept in mind.

Administrative Law:

Principles of Natural Justice-Audi alteram partem rule-Non-com- pliance with the rule Effect of To be viewed in circumstantial flexibility

Practice & Procedure:

Plea of invalidity based on public policy-Not barred by rule of estoppel Procedural technicalities-To yield to paramount considerations of justice and faimess where matter involves moral and humaniterian considerations.


2. Case referred
3. Act
  • Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 (21 of 1985)
  • Constitution Of India
  • Code of Civil Procedure, 1908 (5 of 1908)
4. Keyword
  • Bhopal Gas Disaster