Question

In M. C. Mehta Vs. Union of India, AIR1987 SC1086 (Shriram Foods & Fertilizers case) the principle that was constitutionally laid that

• A. in the case of escape of toxic gas the enterprise is strictly and absolutely liable to compensate all those who are affected by the accident
• B. in the case of escape of toxic gas the enterprise is only liable for the negligence
• C. in the case of escape of toxic gas the enterprise is only liable for the failure to take reasonable care if any
• D. in the case of escape of toxic gas the enterprise is not liable for the accident

Answer 1

The Correct Option is A

In the landmark case of M. C. Mehta Vs. Union of India, AIR1987 SC1086, often referred to as the Shriram Foods & Fertilizers case, the Supreme Court of India established an important legal principle regarding the liability of enterprises in the context of industrial hazards. The court held that in cases where toxic gases escape from an industrial operation, the enterprise involved is held "strictly and absolutely liable" for compensating all those affected by the incident. This implies that:

• The enterprise cannot argue for leniency based on the absence of negligence or fault.
• The liability is not contingent upon proving a breach of duty or failure to take reasonable care.
• This principle serves to ensure that victims receive compensation promptly and that enterprises exercise the highest degree of care in their operations to prevent such incidents.
• This decision was a departure from traditional principles of negligence, emphasizing the responsibility of enterprises towards public safety, especially when engaging in activities with potential hazardous effects.

Hence, the correct answer from the provided options is: in the case of escape of toxic gas the enterprise is strictly and absolutely liable to compensate all those who are affected by the accident.