Union Carbide Corporation (UCC) Bhopal vs Union Of India
Union Carbide Corporation (UCC) Bhopal vs Union Of India
Principle:
A state may exercise civil and criminal jurisdiction over its national on the basis that nationality is a mark of allegiance.
Known as Active nationality principle.
Fact:
In 1984 an explosion of a gas tank has occurred as the tank was leaked due to negligence and as a consequence, thousands of people died and suffered many more. The accident has occurred in the factory of Union Carbide Corporation which was a multinational company and it’s headquarter was situated in USA.
India adopted the active nationality principal and sued the company in a court of USA, so that they can claim more money as compensation. But the USA court interpreted in a view of Passive Nationality principal and said the forum is not right to sue the company.
Issue:
Whether it is appropriate to claim damages under Active nationality principle in USA Court by India?
Decision:
The court held that USA is not the proper place to institute this case.
Reasoning:
USA show the cause that, USA is not the correct place as the Indian court may have more evidence and document regarding the incident; they interpreted it with the help of Passive Nationality Principal.