THE BHOPAL GAS LEAK DISASTER (PROCESSING OF CLAIMS) ACT, 1985 
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ARRANGEMENT OF SECTIONS 
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SECTIONS 

1.  Short title and commencement. 
2.  Definitions. 
3.  Power of Central Government to represent claimants. 
4.  Claimant’s right to be represented by a legal practitioner. 
5.  Power of Central Government. 
6.  Commissioner and other officers and employees. 
7.  Power to delegate. 
8.  Limitation. 
9.  Power to frame a Scheme. 
10.  Removal of doubts. 
11.  Overriding effect. 
12.  Repeal and saving. 

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THE BHOPAL GAS LEAK DISASTER (PROCESSING OF CLAIMS) ACT, 1985 

ACT NO. 21 OF 1985 

[29th March, 1985.] 

An Act to confer certain powers on the Central Government to secure that claims arising out of, 
or connected with, the Bhopal gas leak disaster are dealt with speedily, effectively, equitably 
and to the best advantage of the claimants and for matters incidental thereto. 

BE it enacted by Parliament in the Thirty-sixth Year of the Republic of India as follows:— 

1.  Short  title  and  commencement.—(1)  This  Act  may  be  called  the  Bhopal  Gas  Leak  Disaster 

(Processing of Claims) Act, 1985. 

(2) It shall be deemed to have come into force on the 20th day of February, 1985. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a)  “Bhopal  gas  leak  disaster”  or  “disaster”  means  the  occurrence  on  the  2nd  and  3rd  days  of 
December, 1984, which involved the release of highly noxious and abnormally dangerous gas from a 
plant in Bhopal (being a plant of the Union Carbide India Limited, a subsidiary of the Union Carbide 
Corporation, U.S.A.) and which resulted in loss of life and damage to property on an extensive scale; 

(b) “claim” means— 

(i) a claim, arising out of, or connected with, the disaster, for compensation or damages for 

any loss of life or personal injury which has been, or is likely to be, suffered; 

(ii) a claim, arising out of, or connected with, the disaster, for any damage to property which 

has been, or is likely to be, sustained; 

(iii)  a  claim  for  expenses  incurred  or  required  to  be  incurred  for  containing  the  disaster  or 

mitigating or otherwise coping with the effects of the disaster; 

(iv) any other claim (including any claim by way of loss of business or employment) arising 

out of, or connected with, the disaster; 

(c) “claimant” means a person entitled to make a claim; 

(d) “Commissioner” means the Commissioner appointed under section 6; 

(e) “person” includes the Government; 

(f) “Scheme” means a Scheme framed under section 9. 

Explanation.—For  the  purposes  of  clauses  (b)  and  (c),  where  the  death  of  a  person  has  taken 
place as a result of the disaster, the claim for compensation or damages for the death of such person 
shall be for the benefit of the spouse, children (including a child in the womb) and other heirs of the 
deceased and they shall be deemed to be the claimants in respect thereof. 

3. Power of Central Government to represent claimants.—(1) Subject to the other provisions of 
this Act, the Central Government shall, and shall have the exclusive right to, represent, and act in place of 
(whether  within  or  outside  India)  every  person  who  has  made,  or  is  entitled  to  make,  a  claim  for  all 
purposes connected with such claim in the same manner and to the same effect as such person. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  provisions  of  sub-section  (1),  the 

purposes referred to therein include— 

(a) institution of any suit or other proceeding in or before any court or other authority (whether 

within or outside India) or withdrawal of any such suit or other proceeding, and 

(b) entering into a compromise. 

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(3) The provisions of sub-section (1) shall apply also in relation to claims in respect of which suits or 
other proceedings have been instituted in or before any court or other authority (whether within or outside 
India) before the commencement of this Act: 

Provided  that  in  the  case  of  any  such  suit  or  other  proceeding  with  respect  to  any  claim  pending 
immediately before the commencement of this Act in or before any court or other authority outside India, 
the Central Government shall represent, and act in place of, or along with, such claimant, if such court or 
other authority so permits. 

4.  Claimant’s  right  to  be  represented  by  a  legal  practitioner.—Notwithstanding  anything 
contained  in  section  3,  in  representing,  and  acting  in  place  of,  any  person  in  relation  to  any  claim,  the 
Central Government shall have due regard to any matters which such person may require to be urged with 
respect  to  his  claim  and  shall,  if  such  person  so  desires,  permit  at  the  expense  of  such  person,  a  legal 
practitioner of his choice to be associated in the conduct of any suit or other proceeding relating to his 
claim. 

5. Power of Central Government.—(1) For the purpose of discharging its functions under this Act, 
the Central Government shall have the powers of a civil court while trying a suit under the Code of Civil 
Procedure, 1908 (5 of 1908) in respect of the following matters, namely:— 

(a) summoning and enforcing the attendance of any person from any part of India and examining 

him on oath; 

(b) requiring the discovery and production of any document; 

(c) receiving evidence on affidavits; 

(d) requisitioning any public record or copy thereof from any court or office; 

(e) issuing commissions for the examination of witnesses or documents; 

(f) any other matter which the Central Government may, by notification in the Official Gazette, 

specify. 

(2) Every notification made under clause (f) of sub-section (1) shall be laid, as soon as may be after it 
is made, before each House of Parliament, while it is in session, for a total period of thirty days which 
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the 
session  immediately  following  the  session  or  the  successive  sessions  aforesaid,  both  Houses  agree  in 
making any modification in the notification or both Houses agree that the notification should not be made, 
the notification shall thereafter have effect only in such modified form or be of no effect, as the case may 
be;  so,  however,  that  any  such  modification  or  annulment  shall  be  without  prejudice  to  the  validity  of 
anything previously done under that notification. 

6.  Commissioner  and  other  officers  and  employees.—(1)  For  the  purpose  of  assisting  it  in 
discharging its functions under this Act, the Central Government may appoint an officer, to be known as 
the Commissioner for the welfare of the victims of the Bhopal gas leak disaster, and such other officers 
and employees to assist him as that Government may deem fit. 

(2) The Commissioner shall discharge such functions as may be assigned to him by the Scheme. 

(3)  The  Commissioner  and  such  of  the  officers  subordinate  to  him  as  may  be  authorised  by  the 
Central Government by notification in the Official Gazette in this behalf may, for the discharge of their 
functions  under  the  Scheme,  exercise  all  or  any  of  the  powers  which  the  Central  Government  may 
exercise under section 5. 

(4) All officers and authorities of the Government shall act in aid of the Commissioner. 

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1[(5) The Commissioner and the officers subordinate to him authorised to discharge functions under 
the Scheme shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the 
Code of Criminal Procedure, 1973 (2 of 1974).] 

7.  Power  to  delegate.—The  Central  Government  may,  by  notification  in  the  Official  Gazette, 
delegate, subject to such conditions and limitations as may be specified in the notification, all or any of its 
powers  under this  Act (excepting  the  power  under  section 9  to  frame  a  Scheme) to the  Government  of 
Madhya Pradesh or an officer of the Central Government not below the rank of a Joint Secretary to that 
Government or an officer of the Government of Madhya Pradesh not below the rank of a Secretary to that 
Government 2[or the Commissioner]. 

8. Limitation.—(1) In computing, under the Limitation Act, 1963 (36 of 1963) or any other law for 
the time being in force, the period of limitation for the purpose of instituting a suit or other proceeding for 
the  enforcement  of  a  claim,  any  period  after  the  date  on  which  such  claim  is  registered  under,  and  in 
accordance with, the provisions of the Scheme shall be excluded. 

(2) Nothing in sub-section (1) shall apply to any proceedings by way of appeal. 

9.  Power  to  frame  a  Scheme.—(1)  The  Central  Government  shall,  for  carrying  into  effect  the 
purposes of this Act, frame by notification in the Official Gazette a Scheme as soon as may be after the 
commencement of this Act. 

(2) In particular and without prejudice to the generality of the provisions of sub-section (1), a Scheme 

may provide for all or any of the following matters, namely:— 

(a)  the  registration  of  the  claims  under  the  Scheme  and  all  matters  connected  with  such 

registration; 

(b) the processing of the claims for securing their enforcement and matters connected therewith; 

(c) the maintenance of records and registers in respect of the claims; 

(d)  the  creation  of  a  fund  for  meeting  expenses  in  connection  with  the  administration  of  the 

Scheme and of the provisions of this Act; 

(e) the amounts which the Central Government may, after due appropriation made by Parliament 
by law in that behalf, credit to the fund referred to in clause (d) and any other amounts which may be 
credited to such fund; 

(f)  the  utilisation,  by  way  of  disbursal  (including  apportionment)  or  otherwise,  of  any  amounts 

received in satisfaction of the claims; 

(g) the officer (being a judicial officer of a rank not lower than that of a District Judge) who may 

make such disbursal or apportionment in the event of a dispute; 

(h)  the  maintenance  and  audit  of  accounts  with  respect  to  the  amounts  referred  to in  clauses(e) 

and (f); 

(i) the functions of the Commissioner and other officers and employees appointed under section 

6. 

(3)  Every  Scheme  framed under  sub-section (1)  shall  be laid,  as  soon as  may  be  after it is  framed, 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the  session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 

1. Ins. by Act 24 of 1992, s. 2 (w.e.f. 12-8-1992). 
2. Ins. by s. 3, ibid. (w.e.f. 12-8-1992). 

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modification in the Scheme or both Houses agree that the Scheme should not be framed, the Scheme shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that Scheme. 

10. Removal of doubts.—For the removal of doubts, it is hereby declared that— 

(a)  any  sums  paid  by  the  Government  to  a  claimant  otherwise  than  by  way  of  disbursal  of  the 
compensation or damages received as a result of the adjudication or settlement of his claim by a court 
or other authority, shall be deemed to be without prejudice to the adjudication or settlement by such 
court or other authority of his claim to receive compensation or damages in satisfaction of his claim 
and  shall  not  be  taken  into  account  by  such  court  or  other  authority  in  determining  the  amount  of 
compensation or damages to which he may be entitled in satisfaction of his claim; 

(b) in disbursing under the Scheme the amount received by way of compensation or damages in 
satisfaction  of  a  claim  as  a  result  of the  adjudication or  settlement  of  the claim  by  a  court  or  other 
authority, deduction shall be made from such amount of the sums, if any, paid to the claimant by the 
Government before the disbursal of such amount. 

11. Overriding effect.—The provisions of this Act and of any Scheme framed thereunder shall have 
effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act or 
any instrument having effect by virtue of any enactment other than this Act. 

12. Repeal and saving.—(1) The Bhopal Gas Leak Disaster (Processing of Claims) Ordinance, 1985  

(1 of 1985),is hereby repealed. 

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be 

deemed to have been done or taken under the corresponding provisions of this Act. 

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