ORDER

1. The Bhopal Gas Leak tragedy that occurred at midnight on December 2, 1984, by the escape of deadly chemical fumes from the appellants pesticide factory was a horrendous industrial mass disaster, unparalleled in its magnitude and devastation and remains a ghastly monument to the dehumanising influence of inherently dangerous technologies. The tragedy took an immediate toll of 2660 innocent human lives and left tens of thousands of innocent citizens of Bhopal physically impaired or affected in various degrees. What added grim poignance to the tragedy was that the industrial enterprise was using Methyl Isocyanate, a lethal toxic poison, whose potentiality for destruction of life and biotic communities was, apparently, matched only by the lack of a pre-package of relief procedures for management of any accident based on adequate scientific knowledge as to the ameliorative medical procedures for immediate neutralisation of its effects.

2. It is unnecessary for the present purpose to refer, in any detail, to the somewhat meandering course of the legal proceedings of the recovery of compensation initiated against the multinational company initially in the courts in the United States of America and later in the District Court at Bhopal in Suit No. 113 of 1986. It would suffice to refer to the order dated April 4, 1988 of the High Court of Madhya Pradesh which, in modification of the interlocutory order dated December 17, 1987 made by the learned District Judge, granted an interim compensation of Rs. 250 crores. Both the Union of India and the Union Carbide Corporation appealed against that order.

3. This Court by its order dated February 14, 1989 (Union Carbide Corpn. v. Union of India, (1989) 1 SCC 674 : 1989 SCC (Cri) 243), made in those appeals directed that there be an overall settlement of the claims in the suit, for 470 million US dollars and termination of all civil and criminal proceedings. The opening words of the order said : (SCC p. 675, para 1)

Having given our careful consideration for these several days to the facts and circumstances of the case placed before us by the parties in these proceedings, including the pleadings of the parties, the mass of data placed before us, the material relating to the proceedings in the courts in the courts in the United States of America, the offers and counter-offers made between the parties at different stages during the various proceedings, as well as the complex issues of law and fact raised before us and the submissions made thereon, and in particular the enormity of human suffering occasioned by the Bhopal Gas disaster and the pressing urgency to provide immediate and substantial relief to victims of the disaster, we are of opinion that the case is pre-eminently fit for an overall settlement between the parties covering all litigations, claims, rights and liabilities related to and arising out of the disaster..........

4. It appears to us that the reasons that persuaded this Court to make the order for settlement should be set out, so that those who have sought a review might be able effectively to assist the court in satisfactorily dealing with the prayer for a review. The statement of the reasons is not made with any sense of finality as to the infallibility of the decision; but with an open mind to be able to appreciate any tenable and compelling legal or factual infirmities that may be brought out, calling for remedy in review under Article 137 of the Constitution.

5. The points on which we propose to set out brief reasons are the following :

(a) How did this Court arrive at sum of 470 million US dollars for an overall settlement ?

(b) Why did the court consider this sum of 470 million US dollars as just, equitable and reasonable ?

(c) Why did the court not pronounce on certain important legal questions of far-reaching importance said to arise in the appeals as to the principles of liability of monolithic, economically entrenched multinational companies operating with