Proposed cap on nuclear liability violates statute: Sorabjee

NEW DELHI - Former attorney general Soli Sorabjee Thursday said the union cabinet’s decision to approve a bill capping the amount of compensation to be paid by foreign companies in case of a nuclear disaster violates fundamental rights and Supreme Court judgments.

The cabinet Nov 20 passed the text of the Civil Nuclear Liability bill, that will put a cap on the liability that foreign companies will have to pay - at Rs. 2500 crore in case of accident in a nuclear plant or complex.

The rest of the liability will have to be paid by the government, who will also have the responsibility as the operator to ensure that the compensation is paid. This bill has to be approved by parliament.

Currently, only the Atomic Energy Act allows the state-run Nuclear Power Corporation India Ltd to operate nuclear plants. But with the opening up of international nuclear trade to India, American companies have sought a civil nuclear liability regulatory framework in place before they enter the market for transfer of nuclear-related technology, services and material.

Sorabjee criticised the bill’s proposal to cap the liability.

“In view of these Supreme Court judgments which are part of Indian jurisprudence and whose thrust is for the protection of victims of accidents as part of their fundamental rights under Article 21 of the Constitution, there is no warrant or justification for capping nuclear liability, as is sought to be done, he said in a legal opinion to Greenpeace India, released here Thursday.

Sorabjee, an eminent jurist, reiterated that the passage of such a bill will not be in the interest of the Indian people.

“Any such move will be in defiance of the aforesaid Supreme Court judgments and will be contrary to the interest of people of India and their fundamental rights under Article 21 of the Constitution.”

The principle of “polluter pays” is enshrined in Indian law and upheld by several Supreme Court judgments, he noted.

“Supreme Court judgments have clearly laid down, as part of Indian jurisprudence, that in case of accidents occurring in plants run by enterprises which are engaged in a hazardous or inherently dangerous activity that poses a potential threat to the health and safety of persons, such enterprises owe an absolute and non-delegable duty to ensure that no harm results to anyone, he said.