Bhopal Gas Tragedy: Supreme Court Dismisses Centre's Plea Seeking Additional Compensation From UCC's Firms

The Supreme Court on Tuesday dismissed Centre's curative plea seeking additional funds from Union Carbide Corporation's successor firms for victims of the 1984 Bhopal gas tragedy.

While pronouncing the verdict, the apex court said that a sum of Rs 50 crore lying with the Reserve Bank of India for victims of the tragedy shall be utilised by the Centre to satisfy the pending claims.

The government had filed a curative petition to further sought compensation of Rs 7,844 crores from UCC's successor firms for the victims of the Bhopal tragedy that killed over 3,000 people and caused environmental damage.

A five-judge constitution bench headed by Justice Sanjay Kishan Kaul pronounced the verdict. The bench, also comprising Justice Sanjiv Khanna, Justice Abhay S Oka, Justice Vikram Nath and Justice J K Maheshwar, had on January 12 reserved its verdict on the Centre's curative plea.

What has been the Centre's demand?

The Centre wanted another Rs 7,844 crore from the UCC's successor firms over and above the USD 470 million (Rs 715 crore) it got from the American company as part of the settlement in 1989.

A curative petition was the last resort for a plaintiff after an adverse judgement has been delivered and the plea for its review is rejected. The Centre had not filed a review petition for rescinding the settlement which it now wants to be enhanced.

The Centre has been insisting that the enormity of the actual damage caused to human lives and the environment could not be assessed properly at the time of the settlement in 1989.

The then UCC chairman Warren Anderson was the prime accused in the case but did not appear for the trial.

On February 1, 1992, the Bhopal CJM court declared him an absconder. The courts in Bhopal had issued non-bailable warrants against Anderson twice in 1992 and 2009 before his death in September 2014.

What has been UCC's demand?

On January 12, the successor firms of UCC told the top court that the depreciation of the rupee since 1989, when a settlement was arrived at between the company and the Centre, cannot be a ground to now seek a "top-up" of compensation for the victims of the Bhopal gas tragedy.

The firms had told the top court that the Government of India never suggested at the time of the settlement that it was inadequate.

"There are series and series of affidavits starting from 1995 and ending as late as 2011, where the Union of India has opposed every single attempt to suggest that the settlement (of 1989) is inadequate. Affidavits upon affidavits were filed," senior advocate Harish Salve, appearing for the UCC successor firms had submitted.  

Now, the actual argument before the court is that the settlement has become inadequate because the rupee depreciated, he had contended.

The UCC, now owned by Dow Chemicals, gave a compensation of Rs USD 470 million (Rs 715 crore at the time of settlement in 1989) after the toxic methyl isocyanate gas leak from the Union Carbide factory on the intervening night of December 2 and 3, 1984 killed over 3,000 people and affected 1.02 lakh more.

The survivors of the tragedy have long been fighting for adequate compensation and proper medical treatment for ailments caused by the poisonous gas leak.

Court's statements

The top court had, during the hearing, told the Centre that it cannot act like a "knight in shining armour" and decide the curative plea seeking additional funds from UCC as a civil suit, and asked the government to "dip into its own pocket" to provide enhanced compensation.

On January 10, the top court questioned the Centre for pursuing its curative plea seeking additional funds from UCC, saying the government cannot reopen a settlement that was reached with the company after over 30 years.

(with PTI inputs)