Judgment

SABYASACH1 MUKHARJI, C.J.I. :- Is the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 (hereinafter referred to as the Act) is constitutionally valid? That is the question.

2. The Act was passed as a sequel to a grim tragedy. On the night of 2nd December, 1984 occurred the most tragic industrial disaster in recorded human history in the city of Bhopal in the State of Madhya Pradesh india. On that night there was massive escape of lethal gas from the MIC storage tank at Bhopal Plant of the Union Carbide (I) Ltd. (hereinafter referred to as UCIL ) resulting in large scale death and untold disaster. A chemical plant owned and operated by UCIL was situated in the northern sector of the city of Bhopal. There were numerous hutments adjacent to it on its southern side, which were occupied by impoverished squatters. UCIL manufactured the pesticides, Sevin and Temik, at the Bhopal plant, at the request of, it is stated by Judge John F. Keenan of the United States District Court in his judgment, and indubitably with the approval of the Govt. of India. UCIL was incorporated in 1984 under the appropriate Indian law. 50.99 of its shareholdings were owned by the Union Carbide Corporation (UCC), a New York Corporation. L.I.C. and the Unit Trust of India own 22 of the shares of U.C.I.L., a subsidiary of U.C.C.

3. Methyl Isocyanate (MIC), a highly toxic gas, is an ingredient in the production of both Sevin and Temik. On the night of the tragedy MIC leaked from the plant in substantial quantities. The exact reasons for and circumstances of such leakage have not yet been ascertained or clearly established. The results of the disaster were horrendous. Though no one is yet certain as to how many actually died as the immediate and direct result of the leakage, estimates attribute it to about 3000. Some suffered injuries the effects of which, are described as carcinogenic and carcenogenic by Ms. Indira Jaisingh, learned counsel; some suffered injuries serious and permanent and some mild and temporary. Livestock was killed, damaged and infected. Businesses were interrupted. Environment was polluted and the ecology affected, flora and fauna disturbed.

4. On 7th December, 1984, Chairman of UCC Mr. Warren Anderson came to Bhopal and was arrested. He was later released on bail. Between December 1984 and January 1985 suits were filed by several American lawyers in the Courts in America on behalf of several victims. It has been stated that within a week after the disaster many American lawyers described by some as ambulance chasers, whose fees were stated to be based on a percentage of the contingency of obtaining damages or not, flew over to Bhopal and obtained powers of Attorney to bring actions against UCC and UCIL. Some suits were also filed before the District Court of Bhopal by individual claimants against UCC (the American Company) and the UCIL.

5. On or about 6th February, 1985, all the suits in various U.S. Distt. Courts were consolidated by the Judicial Panel on Hulti-District Litigation and assigned to U.S. Distt. Court, Southern Distt. of New York. Judge Keenan was at all material times the Presiding Judge there.

6. On 29th March, 1985, the Act in question was passed. The Act was passed to secure that the claims arising out of or connected with the Bhopal gas leak disaster were dealt with speedily, effectively and equitably. On 8th April, 1985 by virtue of the Act the Union of India filed a complaint before the U.S. Distt. Court, Southern Distt. of New York. On 16th April, 1985 at the first pre-trial conference in the consolidated action transferred and assigned to the U.S. Distt. Court, Southern Distt., New York, Judge Keenan gave the following directions :-

i) that a three member Executive Committee be formed to frame and develop issues in the case and prepare expeditiously for trial or settlement negotiations. The Committee was to comprise of one lawyer selected by the firm retained by the Union of India and two other lawyers ch