Industrial growth has always walked hand-in-hand with environmental risks. The rapid expansion of chemical and hazardous industries during the 20th century made it clear that traditional legal principles were no longer sufficient to protect citizens from industrial disasters. The Oleum Gas Leak Case — M.C. Mehta v. Union of India (1986) — became a watershed moment in Indian environmental law, giving birth to the doctrine of absolute liability, strengthening the right to life under Article 21, and shaping the future of environmental governance in the country.
This case is considered the foundation upon which modern Indian environmental jurisprudence stands today.
Background of the Incident
The Oleum Gas Leak occurred in December 1985, barely a year after the Bhopal Gas Tragedy. The incident took place at Shriram Foods and Fertilizers Industries, a chemical plant located in Kirti Nagar, Delhi. The factory was involved in manufacturing hazardous chemicals, including oleum (a fuming liquid form of sulphuric acid).
Between 4–6 December 1985, a tank containing oleum gas leaked, leading to the death of an advocate practising in the Tis Hazari Court and injuring several others. Public panic spread across Delhi. The incident happened while the Supreme Court was already hearing a PIL filed by M. C. Mehta, seeking closure or relocation of such hazardous industries from thickly populated areas.
The leak intensified the urgency of the case, making it essential for the Court to lay down new principles of liability to deal with modern industrial hazards.
Key Legal Issues Before the Court
The Supreme Court addressed several important questions:
✔ 1. What is the liability of hazardous industries in case of an accident?
The existing law was based on Rylands v. Fletcher (1868), which followed strict liability, but provided many exceptions such as:
- Act of God
- Act of third party
- Plaintiff’s own fault
- Consent of the plaintiff
The Court had to decide if this outdated rule could still protect citizens in an era of complex chemical industries.
✔ 2. Does the right to life under Article 21 include the right to a safe and pollution-free environment?
The Court needed to interpret Article 21 expansively to protect citizens from environmental hazards.
✔ 3. Should industries dealing with hazardous substances be permitted in congested urban areas?
This also connected to the State’s duty to regulate such industries and ensure safety.
The Supreme Court’s Judgment
The judgment, delivered by Chief Justice P. N. Bhagwati, is one of the most influential in Indian environmental law.
1. Introduction of the Doctrine of Absolute Liability
The Court created a new principle called Absolute Liability, stating:
An enterprise engaged in hazardous activities is absolutely liable for any harm caused, and no exceptions are permitted.
This doctrine was stricter than the rule in Rylands v. Fletcher.
⭐ Key Features of Absolute Liability:
- No exceptions (no act of God, no third-party defence).
- The enterprise must compensate all affected persons automatically.
- The amount of compensation must match the capacity and size of the enterprise (“deep pockets doctrine”).
- A hazardous industry has a non-delegable duty to ensure community safety.
This principle ensured that industries profiting from hazardous activities also bear the full cost of harm caused by them.
2. Expanded Interpretation of Article 21
The Court held that the right to life under Article 21 includes:
- Right to live with human dignity
- Right to a clean and safe environment
- Right to protection from hazardous industries
This case strengthened the constitutional basis of environmental rights in India.
3. State Responsibility and Regulatory Duty
The Court emphasized that the State cannot allow hazardous industries to function in populated areas without strict supervision. Regulatory authorities must:
- Enforce safety standards
- Conduct regular inspections
- Create disaster-management protocols
- Ensure immediate compensation mechanisms
The judgment signalled that environmental governance is a constitutional duty of the State.
Impact of the Judgment
1. Foundation of Modern Environmental Jurisprudence
The Oleum Gas Leak Case paved the way for later landmark decisions such as:
- Subhash Kumar v. State of Bihar (1991) – recognised right to pollution-free water and air as part of Article 21.
- Indian Council for Enviro-Legal Action v. Union of India (1996) – applied absolute liability to chemical industries polluting soil and groundwater.
- Vellore Citizens’ Welfare Forum v. Union of India (1996) – introduced the Precautionary Principle and Polluter Pays Principle.
- M.C. Mehta v. Kamal Nath (1997) – reaffirmed Polluter Pays and Public Trust Doctrine.
These cases built upon the principles first articulated in the Oleum Gas Leak judgment.
2. Strengthening Public Interest Litigation (PIL)
The Court encouraged public interest petitions in environmental matters. NGOs, social activists, and citizens now had a powerful tool to demand accountability from:
- Government agencies
- Private corporations
- Polluting industries
This broadened access to justice and strengthened environmental democracy.
3. Trigger for Environmental Regulations
Though not immediate, the case influenced the evolution of:
- Environment (Protection) Act, 1986
- Hazardous Waste Rules
- Chemical Accidents Rules
- National Green Tribunal Act, 2010 (NGT)
The principles of absolute liability also ultimately shaped civil liability frameworks, insurance requirements, and industrial safety norms.
Criticisms and Limitations
Some scholars argue:
- Implementation of compensation remains slow.
- Regulators often lack resources.
- Industries still operate near residential zones.
Yet, the doctrine of absolute liability remains unmatched as a judicial innovation in protecting citizens from industrial hazards.
Conclusion
The Oleum Gas Leak Case stands as a monumental judgment in Indian environmental jurisprudence. It established a modern legal framework for industrial hazards by introducing absolute liability, expanding Article 21, strengthening PIL, and pushing the State toward responsible environmental governance.
More than a case, it is a constitutional commitment that no industrial progress is worth more than human life and environmental safety. It remains a guiding light for courts, policymakers, and citizens working towards a safer, pollution-free India.
References
- M.C. Mehta v. Union of India, (1987) 1 SCC 395 — Oleum Gas Leak Case.
- Rylands v. Fletcher, (1868) LR 3 HL 330 — Strict liability principle.
- Subhash Kumar v. State of Bihar, (1991) 1 SCC 598.
- Indian Council for Enviro-Legal Action v. Union of India, (1996) 3 SCC 212.
- Vellore Citizens’ Welfare Forum v. Union of India, (1996) 5 SCC 647.
- M.C. Mehta v. Kamal Nath, (1997) 1 SCC 388.
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Dr. Ganesh Visavale 