Question

The Supreme Court of India invoked the principle of absolute liability on an enterprise carrying on business with hazardous and inherently dangerous toxic chemicals in

• A. Ganga Pollution case
• B. Fletcher case
• C. Sri Ram Fertilizers case
• D. Prabhu dayal case

Hint:

Key distinctions for exams: - \textbf{Strict Liability} = Rylands v Fletcher (English case, has exceptions). - \textbf{Absolute Liability} = M.C. Mehta v. UOI / Sri Ram Fertilizers case (Indian principle, no exceptions for hazardous industries).

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The principle of 'Absolute Liability' is a standard of liability in tort law that is stricter than 'Strict Liability'. It was a significant judicial innovation by the Supreme Court of India.
Step 2: Detailed Explanation:
- Strict Liability: The rule of strict liability was established in the English case of Rylands v Fletcher. It holds a person liable for any damage caused by the escape of a dangerous thing they brought onto their land, but it has several exceptions (e.g., Act of God, plaintiff's own fault).
- Evolution to Absolute Liability: The Supreme Court of India found the rule of strict liability inadequate to deal with the realities of a modern industrialised society, especially after the Bhopal Gas Tragedy.
- The Case: The principle of absolute liability was laid down in the case of M.C. Mehta v. Union of India (1987), famously known as the Oleum Gas Leak case. This case involved a leak of oleum gas from a unit of Shriram Food and Fertilisers Ltd. in Delhi, which caused injuries and death.
- The Principle: The Supreme Court, led by Justice P.N. Bhagwati, held that an enterprise engaged in a hazardous or inherently dangerous activity has an absolute and non-delegable duty to ensure that no harm results to anyone. If harm does occur, the enterprise is absolutely liable to compensate all those who are affected. The Court explicitly stated that this liability is not subject to any of the exceptions available under the rule of strict liability. The Court reasoned that an enterprise making a profit from such dangerous activities must bear the cost of any accidents. This is why the case is also referred to as the "Sri Ram Fertilizers case".
Step 3: Final Answer:
The principle of absolute liability for hazardous industries was established by the Supreme Court in the M.C. Mehta v. Union of India case, which is commonly known as the Sri Ram Fertilizers case.