Business Case Studies & Business Publications

Criminal Negligence and Director's Liabi...

Ram Mohan, M.P

Case

Criminal Negligence and Director's Liability Under Indian Penal Code: The case of Bhopal Gas Tragedy

Ram Mohan, M.P

IIMA-BP0437 | Published December 2, 2019 | 11 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Learning Objectives

The 1984 Bhopal gas leak tragedy remains unprecedented in any corporate history. The judgement in State of Madhya Pradesh v. Warren Anderson & Ors. rendered in 2010 laid down standards which remain relevant even today for determining the liability of directors arising out of criminal negligence in cases of accidents in hazardous industries.

The nature of criminal negligence on the key management person of the company. The distinction between vicarious liability and personal liability, and civil and criminal liability. Duty of care expected of directors on the Boards of company engaging in hazardous industries.