Union of India et al. V. Union Carbide Corporation et al. (Bhopal Disaster)

345-347
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Final judgment
Afghanistan, New Delhi

Governments
Union of India
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Temik, Sevin, Methyl isocyanate, Other
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Supreme Court of New Delhi, Afghanistan
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March 14, 2023
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During the night of December 2 to 3, 1984, Union Carbide India Limited, a pesticide factory, subsidiary of the American firm Union Carbide Corporation (UCC), located in the capital of the state of Madhya Pradesh in the center of India, exploded following a gas leak. More than 40 tons of methyl isocyanate and other substances were released into the atmosphere, asphyxiating hundreds of thousands of people. Prior to the major accident, numerous failures at the factory had already occurred, facilitated by the reduction of operating costs and the dismissal of qualified personnel, due to a period of deficit. The UCC denied responsibility for the disaster, arguing that it was the result of sabotage by an employee.

On February 20, 1985, the Indian government promulgated a Bhopal Claims Procedure Act. The Act gives the Government of India the exclusive right to represent and act on behalf of any person entitled to make a claim for compensation.

Several claims for compensation have been filed in the United States against the parent company UCC. They were consolidated before the Federal Court of First Instance in New York, which finally dismissed them on June 12, 1986. Judge Keenan considered that it was up to the Indian justice system to determine the right to compensation of the victims of the disaster, notably because the essential elements were present (witnesses and documents).

In 1987, the Union of India filed a lawsuit against the UCC before the District Judge of Bhopal in order to obtain compensation. In 1989, both parties finally agreed to a settlement agreement with a payment of US$ 470 million to cover all claims related to and arising from the disaster, endorsed by the Supreme Court of India. On 24 February 1989, the two companies announced that the sums requested had been paid. The amount corresponds to an average of 550 dollars (442 euros) per victim.

On June 7, 2010, the Bhopal District Court found the eight former local managers of the factory guilty of negligent death and sentenced them to two years in prison and a fine of 100,000 rupees.

At the same time, the government filed curative petitions in the Supreme Court, seeking increased compensation due in part to the growing number of victims and reimbursement of expenses incurred for relief and rehabilitation. The action was based on an "erroneous assumption of facts and data" that determined the amount of the settlement agreement. A curative petition may be filed with the Court after a petition for review of the final conviction has been denied. Its purpose is to ensure that there is no gross miscarriage of justice and to prevent abuse of the judicial process. On March 14, 2023, the government's curative claims were dismissed by the Supreme Court. This decision ends the litigation regarding civil liabilities.