Supreme Court: Courts not bound by govt’s N-liability cap

NEW DELHI: Supreme Court on Tuesday said courts are not barred from determining govt's additional liability towards citizens in case of an unforeseen nuclear power plant mishap, notwithstanding the Sustainable Harnessing and Advancing of Nuclear Energy for Transforming India (SHANTI) Act capping operator's liability at Rs 4,000 crore.

The remarks came from a bench of CJI Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi after petitioner E S Sarma's counsel Prashant Bhushan said the legislation had capped operator's liability at a paltry Rs 4,000 crore even though compensation towards citizens in case of an accident could run into tens of thousands of crores.

Bhushan argued the liability clause would make foreign suppliers lax in enforcing safety norms, turning nuclear plants into a constant threat to lives of nearby residents. He said if govt used 6% of available waste land for solar plants, it could generate six times the present electricity requirement.

The CJI-led bench ask-ed, "Does the Act say that constitutional courts' jurisdiction is barred from entertaining pleas from citizens demanding higher compensation if, God forbid, a mishap happens in a nuclear power plant?"

"If liability after a mishap works out to Rs 40,000 crore, the nation in a parliamentary regime can say it absolves the operator beyond Rs 4,000 crore. But that doesn't bind courts from determining the actual liability of the govt towards each affected citizen. Nobody can curtail even tribunals' powers to award adequate compensation," it said.

"The technology is not available in India and if a very high liability clause is incorporated, would foreign investors come to India? The issue appears to be in the policy domain of the govt," the bench added.

When Bhushan pressed for solar capacity, SC said, "It is not for courts to guide govt on policy matters. When state decides to cap liability at Rs 4,000 crore, should we second guess it?" It adjourned hearing for the second week of July.