ORDER :

1. A horrendous tragedy occurred on the night of 2nd and 3rd December 1984, due to the escape of deadly chemical fumes from the factory owned and operated by M/s Union Carbide India Limited (hereinafter referred as ‘UCIL’) in Bhopal. This Court labelled the mass disaster as “unparalleled in its magnitude and devastation and … a ghastly monument to the dehumanizing influence of inherently dangerous technologies”. Union of India has filed the present curative petitions seeking reconsideration of the settlement that was effected in the aftermath of the tragedy.

Background and claims in the present petitions

2. In order to provide remuneration to victims, and to create an institutional framework for disbursal of remedies, the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 (hereinafter referred as ‘the said Act’), was enacted by the Government of India on 20.02.1985. This granted the Central Government an exclusive right to represent and act in place of every person who was entitled to make a claim for compensation. It also empowered the Central Government to institute suits or other proceedings and to enter into a compromise. Consequently, the Bhopal Gas Leak Disaster (Registration and Processing of Claims) Scheme, 1985, was framed in exercise of powers conferred under Section 9 of the said Act. This Scheme dealt with the procedure for filing and processing of claims made to the Welfare Commissioner as per Section 6 of the said Act.

3. Thereafter, several actions for compensation were brought in the United States District Court for the Southern District of New York against Union Carbide Corporation (hereinafter referred as ‘UCC’). UCC was a New York based corporation which owned 50.9% stock in UCIL at the time of the tragedy. UCC resisted the jurisdiction of the New York Court on grounds of forum non conveniens, claiming that it had subjected itself to the Courts of India. Judge Keenan allowed this plea vide order dated 10.06.1986 and dismissed the consolidated action on the basis of several factors, including the presence of witnesses and evidence in India. The order however recorded UCC’s statement that it shall consent to submit to the jurisdiction of the Courts of India.

4. As a result of the same, a suit was filed by the Union of India against UCC before the District Judge, Bhopal, seeking compensation of approximately US $ 3.3 billion. Being apprehensive about funds being made available for compensation to victims, the Union sought interim compensation from UCC. This prayer received a favourable consideration from the District Judge, who passed an interim order on 17.12.1987 directing UCC to deposit a sum of Rs. 350 crores by way of interim compensation. However, in a revision petition(s) filed by UCC, this amount was reduced to Rs. 250 crores by the Madhya Pradesh High Court vide an order dated 04.04.1988.

5. Being aggrieved by this order, both contesting parties i.e. Union of India and UCC, filed SLPs before this Court. In terms of orders passed in those proceedings, the parties endeavoured to negotiate a settlement, possibly with a little nudge from the Court. The endeavour was successful and UCC agreed to pay a sum of US $ 470 million to the Union of India in settlement of all claims, rights, and liabilities relating to and arising out of the Bhopal Gas disaster. The terms of the settlement were set out in the orders of this Court passed on 14th and 15th February, 1989. This Court observed that there had been careful consideration for several days to the facts and circumstances placed before the Court by the parties; including the pleadings, data, material relating to proceedings in the Courts of USA, the offers and counter offers between the parties at different stages of various proceedings, the complex issues of law and facts raised, as well as the enormity of human suffering occasioned by the Bhopal