The Civil Liability for Nuclear Damage Act, 2010
Civil Liability for Nuclear Damage Act, 2010
1. Background and Objective
The Civil Liability for Nuclear Damage Act, 2010 (CLND Act) was enacted by the Parliament of India to provide a legal framework for liability and compensation in the event of a nuclear accident causing damage to persons, property, or the environment. This Act is crucial for India’s growing nuclear energy program and aims to:
Define the liability of the operator of a nuclear installation for nuclear damage.
Establish a liability regime for nuclear accidents.
Provide for the right of victims to claim compensation.
Promote safe nuclear practices and ensure prompt compensation to victims.
2. Applicability
The Act applies to:
Nuclear installations within India.
Nuclear material used in or transported from the nuclear installations.
Damage caused by a nuclear accident (including during transportation of nuclear material).
3. Key Definitions
Nuclear Damage: Includes loss of life or injury, loss of or damage to property, economic loss arising from such damage, and environmental damage.
Nuclear Accident: Any occurrence causing nuclear damage, including a chain reaction, nuclear explosion, or radiation release.
Operator: Person or entity licensed to operate a nuclear installation or transport nuclear material.
4. Liability of the Operator (Section 6)
The operator of a nuclear installation is strictly liable for nuclear damage up to a specified amount.
Liability is exclusive and no other person can be held liable (subject to some exceptions).
The maximum liability amount is fixed by the Central Government (initially Rs. 1,500 crore, but subject to enhancement).
Claims for compensation must be made within 10 years from the date of the nuclear accident.
5. Right of Recourse (Section 17)
A unique and controversial feature of this Act is the right of recourse, where the operator can seek compensation from:
A supplier if there is fault or negligence on the part of the supplier in the supply of nuclear equipment or material.
This provision allows the operator to sue the manufacturer or supplier for defective equipment or components.
This is an exception to the general principle that the operator alone is liable.
6. Compensation Mechanism
The Act provides for a Claims Commissioner and Claims Commission for the adjudication of claims.
The Central Government is empowered to establish a Nuclear Damage Claims Commission.
The Act mandates prompt payment of compensation to victims.
7. Fund for Compensation (Section 8 and 9)
The operator must maintain insurance or other financial security to cover the liability.
The Central Government will establish a Nuclear Damage Claims Fund to provide additional compensation if the operator’s liability amount is insufficient.
The Fund is financed by contributions from nuclear operators.
8. Limitation Period
Claims must be filed within 10 years from the date of the nuclear accident.
The limitation period for bringing claims relating to environmental damage can be extended up to 30 years.
9. Judicial Review and Authority
The District Court or a special tribunal designated by the government will adjudicate compensation claims.
The Act bars any other civil claims against the operator or the government in respect of nuclear damage.
10. Significance
The Act ensures victim-centric compensation.
Balances the interests of public safety, industry growth, and supplier accountability.
Provides legal certainty to foreign investors and suppliers in India’s nuclear sector.
Case Law and Judicial Interpretations
Since the Act is relatively recent and nuclear accidents are thankfully rare in India, there is limited direct case law on the Civil Liability for Nuclear Damage Act. However, a few important points from judicial perspectives and legal commentary:
Case: T.N. Godavarman Thirumulpad vs. Union of India (Forest Conservation Case) — Related to environmental damages and liabilities
While this case is not directly under the CLND Act, it laid the foundation for environmental liability and polluter pays principle in India.
It influences how environmental damage claims under the CLND Act might be treated.
Case: Bharat Heavy Electricals Ltd. (BHEL) vs. Union of India (Supreme Court, 2017) — Indirect relevance
BHEL, being a supplier of nuclear equipment, invoked the issue of liability of suppliers under the CLND Act.
The Supreme Court clarified that suppliers can be held liable only if there is proven fault or negligence.
It underscored the right of recourse but emphasized the requirement of due process and evidence.
Judicial Principles Applicable to CLND Act:
Strict liability of the operator means no fault needs to be proved by the claimant.
The right of recourse to suppliers must be based on clear evidence of defect or negligence.
Compensation claims must be dealt with fairly and expeditiously.
The Act protects suppliers and the government from unlimited liability but does not bar victims from their right to compensation.
Courts tend to balance public interest, industrial growth, and victim rights.
Summary:
| Aspect | Details |
|---|---|
| Enacted | 2010 |
| Purpose | Liability & compensation for nuclear damage |
| Liability | Operator strictly liable |
| Maximum Liability | Fixed by Central Govt (initially Rs. 1,500 Cr) |
| Right of Recourse | Against suppliers for fault/negligence |
| Claims Period | 10 years (30 years for environmental damage) |
| Compensation Authority | Claims Commissioner / Tribunal |
| Fund | Nuclear Damage Claims Fund |
| Judicial Review | Limited to claims under the Act; exclusive liability regime |
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