ABSOLUTE LIABILITY IN INDIA: UNION CARBIDE ANALYSIS AND THE ROAD AHEAD

AUTHORS- RUDRAKSH SINGH SISODIA & KRISH NEGI, STUDENTS AT RAJIV GANDHI NATIONAL UNIVERSITY OF LAW, PUNJAB(PATIALA)

BEST CITATION – RUDRAKSH SINGH SISODIA & KRISH NEGI, ABSOLUTE LIABILITY IN INDIA: UNION CARBIDE ANALYSIS AND THE ROAD AHEAD, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (2) OF 2024, PG. 337-349, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

The case of Union Carbide Corporation v. Union of India stands as a significant milestone in the intersection of corporate liability and state sovereignty, particularly in the context of industrial disasters. This commentary aims to dissect the legal intricacies and societal implications stemmingfrom this landmark case.

Union Carbide Corporation, an American multinational corporation, owned and operated a chemical plant in Bhopal, India. In December 1984, a catastrophic gas leak occurred at the plant, resulting in thousands of deaths and widespread injuries. The Union of India filed a lawsuit against Union Carbide Corporation, seeking compensation for the victims and holding the corporation accountable for the environmental and human damages caused by the disaster.

The legal battle between Union Carbide Corporation and the Union of India revolved around complex issues of jurisdiction, corporate liability, and the extent of governmental authority in regulating multinational corporations. The Indian government contended that Union Carbide Corporation should be held liable for the disaster under principles of strict liability and negligence, arguing that the corporation failed to maintain safety standards at its plant. Conversely, Union Carbide Corporation challenged the jurisdiction of the Indian courts and disputed the extent of its liability, citing contractual agreements and asserting that the primary responsibility lay with its Indian subsidiary.

The resolution of Union Carbide Corporation v. Union of India carries profound implications for corporate accountability, environmental justice, and the balance of power between sovereign states and multinational corporations. The case underscored the need for robust regulatory frameworks to govern the activities of multinational corporations operating in foreign jurisdictions, particularly in industries with high potential for environmental harm. Moreover, it highlighted the challenges inherent in seeking justice and restitution for victims of industrial disasters, particularly in cases involving transnational corporations with significant economic resources and legal firepower. While the legal battle between Union Carbide Corporation and the Union of India resulted in a settlement, the case has been subject to criticism regarding the adequacy of compensation for the victims and the efficacy of legal mechanisms in holding corporations accountable for their actions. Furthermore, the case underscores the broader issues of corporate power and the limitations of state sovereignty in regulating global economic actors. Moving forward, the lessons learned from Union Carbide Corporation v. Union of India must inform efforts to strengthen international legal frameworks and corporate accountability mechanisms, ensuring greater protection for human rights and environmental integrity.