Concept of Absolute Liability
Introduction
The principle of absolute liability was established in India through the landmark case of M.C. Mehta v. Union of India, commonly known as the Oleum Gas Leak case. This judgment marked a significant evolution in Indian law. Before this, India followed the British doctrine of strict liability, which allowed defendants to escape liability using various exceptions. However, after the Bhopal Gas Tragedy, which caused widespread loss of life and long-term health issues, the need for a more stringent principle became evident. The Supreme Court, therefore, developed the doctrine of absolute liability, which is a stricter version of strict liability with no exceptions.
Concept of Absolute Liability
Definition: If an industry or enterprise engages in inherently dangerous activities for commercial gain, and those activities have the potential to cause catastrophic damage, the enterprise is liable to pay compensation to the affected parties, regardless of any fault.
Essential Elements of Absolute Liability
- Dangerous Thing: Liability arises when a dangerous substance escapes from the defendant's control, causing harm. Examples include large quantities of water, electricity, gas, explosives, and fumes.
- Escape: The dangerous substance must escape from the defendant’s control and cause damage or injury. For instance, in Read v. Lyons and Co., an explosion occurred within the defendant’s premises, injuring an employee. The court held that the defendant could not escape liability, even though the incident happened within the workplace.
- Non-Natural Use of Land: Liability depends on whether the land was used in a non-natural way. For example, storing water for domestic use is natural, but storing large quantities in a reservoir is not. The distinction between natural and non-natural use considers the surrounding conditions and what a reasonable person would do.
- Mischief: To establish liability, the plaintiff must show that the defendant’s non-natural use of land and the escape of a dangerous substance caused the damage. In Charing Cross Electric Supply Co. v. Hydraulic Power Co., the defendant failed to maintain water pressure, leading to a pipeline burst and significant damage. The court held the defendant liable despite the lack of fault.
Scope of the Rule of Absolute Liability
The rule of absolute liability is generally considered an exception to the usual legal principles. After the Oleum Gas Leak case, the Public Liability Insurance Act, 1991, was introduced to provide compensation to victims of accidents involving hazardous substances. The Act aims to create a public liability insurance fund to compensate those affected by such incidents.
This evolution of the law reflects the need for stricter accountability in cases involving dangerous activities, ensuring that enterprises engaging in such activities bear the full responsibility for any harm caused.
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