UNION OF INDIA & ORS. versus M/S. UNION CARBIDE CORPORATION & ORS

UNION OF INDIA & ORS. versus M/S. UNION CARBIDE CORPORATION & ORS

The curative petitions were dismissed because curative jurisdiction is narrowly circumscribed and not a vehicle to 'top up' a consensual settlement entered after careful consideration; the Union of India, having opposed earlier attempts to reopen the settlement and not having filed review petitions, could not now seek enhancement when (a) the settlement fund and subsequent interest/exchange movements resulted in surplus disburseable funds, (b) the review judgment had already allocated responsibility upon the Union to meet any deficiency and obtain insurance (which it failed to do), and (c) no fraud or other vitiating factor was pleaded to set aside the compromise.

Parties
Petitioner: Union of India & Ors.; Respondent: M/s. Union Carbide Corporation & Ors.
Jurisdiction
India
Judgment Date
14 March 2023
Procedural Posture
Curative Petition / Final Judgment (petitions Dismissed)
Outcome
Curative petitions dismissed
Legal Topics
Curative Jurisdiction, Settlement, Compensation, Statutory Scheme Under the Bhopal Act, Insurance Cover for Future Victims
Civil Procedure Tort Law Environmental Law Administrative Law Curative Jurisdiction Settlement Compensation Statutory Scheme Under the Bhopal Act +1 more

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Parties

Union of India & Ors.

Petitioner

M/s. Union Carbide Corporation & Ors.

Respondent

Procedural Posture

Curative Petition / Final Judgment (petitions Dismissed)

Legal Issues

  1. 1 Whether curative petitions filed by the Union of India after nearly two decades seeking enhancement ('top up') of the 1989 settlement are maintainable
  2. 2 Whether the original settlement (US$470 million) was inadequate in view of updated figures of deaths/injuries and other expenditures
  3. 3 Whether the Union can seek to fix additional liability on UCC for alleged shortfall when the review judgment placed responsibility on the Union to make good any deficiency and obtain insurance

Ratio Decidendi

The curative petitions were dismissed because curative jurisdiction is narrowly circumscribed and not a vehicle to 'top up' a consensual settlement entered after careful consideration; the Union of India, having opposed earlier attempts to reopen the settlement and not having filed review petitions, could not now seek enhancement when (a) the settlement fund and subsequent interest/exchange movements resulted in surplus disburseable funds, (b) the review judgment had already allocated responsibility upon the Union to meet any deficiency and obtain insurance (which it failed to do), and (c) no fraud or other vitiating factor was pleaded to set aside the compromise.

Court Disposition

Curative petitions dismissed

Orders

  • Curative petitions dismissed; parties to bear their own costs.
  • A sum of Rs.50 crore lying with the Reserve Bank of India shall be utilised by the Union of India to satisfy pending claims, if any, in accordance with the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 and the Scheme framed thereunder.