VidhiSangh

Supreme Court of India · 14/03/2023

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

[2023] 2 S.C.R. 881 · 2023 INSC 222

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Summary

Nineteen years after the 1989 settlement under which Union Carbide Corporation paid US$ 470 million for all claims arising from the Bhopal gas disaster, the Union of India filed curative petitions seeking not to set the settlement aside but to 'top up' the amount, contending that it rested on wrong assumptions about the number of victims. The Supreme Court dismissed the petitions: curative jurisdiction is narrow and the Union had filed no review; a settlement is either valid or vitiated by fraud, which was not pleaded, and no legal principle supports a unilateral top-up; the Union's own figures showed the fund in surplus with Rs. 50 crores still undisbursed; and the review judgment had placed any deficiency on the Union as a welfare State, which failed even to take out the directed insurance cover.

Issues

  1. Whether curative petitions filed by the Union of India two decades after the Bhopal gas disaster settlement, without any prior review petition, are maintainable to enhance the settlement amount payable by Union Carbide Corporation.
  2. Whether a settlement recorded by the Court can be 'topped up' on the ground that the number of victims and the costs of relief exceeded the assumptions on which it was based.

Provisions considered

Held

Result

Curative petitions dismissed with parties to bear their own costs; the Rs. 50 crores lying with the Reserve Bank of India to be utilised by the Union of India to satisfy pending claims, if any, under the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 and the Scheme.

Judgment PDF: Supreme Court of India, [2023] 2 S.C.R. 881.