MNCs have no extra legal rights over Indian people: HC

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Chennai: The Madras High Court has held that a multinational firm cannot claim any “extra legal rights over Indian people” and they are allowed to carry on their business subject to Indian laws.

The Court’s observation came while rejecting a plea by US-based Dow Chemical Industries Private Ltd, formerly Union Carbide, to restrain organisations campaigning for justice for the 1984 Bhopal gas tragedy victims from “obstructing the company from functioning smoothly”.

Dismissing the company’s application seeking various kinds of relief as “misconceived and devoid of merit”, Justice K Chandru on Thursday said, “Multinational companies cannot claim any extra legal rights over the Indian people.” Over 2,000 people died and about two lakh people were affected after toxic gas from Union Carbide’s plant in Bhopal leaked in December 1984.

The rights enshrined in Article 19(1)(g) of the Constitution are for only the citizens of the country and not others, the Court held. The Article relates to practising any profession or to carrying on any occupation, trade or business.

Stating that the court would have to see whether the company had a prima facie case, Justice K Chandru noted that barring a protest on February 10, the company was unable to cite any other incident. Justice Chandru pointed out that except for the International Campaign for Justice in Bhopal (ICJIB) based here, the other six organisations listed in the petition as respondents did not have any office in Tamil Nadu. Besides, they have also not been sued in a representative capacity, the Judge observed. Union Carbide became a wholly owned subsidiary of The Dow Chemical Company (TDCC) in February 2001.