Recognizing the limits of strict liability defenses in modern industrial economies, the Supreme Court of India established the doctrine of absolute liability.
1. M.C. Mehta v. Union of India (Oleum Gas Leak Case, 1987)
Chief Justice P.N. Bhagwati rejected the Rylands exceptions for industrial enterprises in India:
"An enterprise engaged in a hazardous or inherently dangerous industry owes an absolute and non-delegable duty to the community to ensure no harm results. If escape occurs, the enterprise is absolutely liable without any exceptions."
2. Core Principles of Absolute Liability
- Zero Defenses: The enterprise cannot claim Act of God, Act of Third Party, or any other Rylands exception. Liability is absolute.
- Proportional Damages (Deep Pocket Principle): The compensation awarded must be proportional to the size and financial capacity of the enterprise to act as a deterrent.
Applied strictly in the Bhopal Gas Disaster and subsequent industrial hazard litigations.