Doctrine of Absolute Liability

The doctrine of absolute liability makes an enterprise fully liable when harm results from an inherently hazardous or dangerous activity conducted by it. Such an enterprise owes an absolute and non-delegable duty to workers and the community to ensure that the activity causes no harm. Liability follows regardless of the care taken by the enterprise.

Origin and scope

The Supreme Court formulated the rule in M.C. Mehta v. Union of India, reported in 1987, following the Oleum Gas Leak. It applies specifically to enterprises engaged in hazardous or inherently dangerous activities whose operations pose exceptional risks to human safety or the environment.

Content of the liability

• If harm results from the hazardous activity, the enterprise is absolutely liable to compensate those affected.
• The duty cannot be transferred to employees, contractors or other persons because it is non-delegable.
• The enterprise cannot avoid liability by proving that it exercised reasonable care or that the harm arose despite precautions.

Difference from strict liability

Unlike the rule of strict liability in Rylands v. Fletcher, absolute liability admits no traditional exceptions, such as an act of God or the act of a third party. The enterprise is permitted to undertake the hazardous activity only on the condition that it absorbs the resulting social costs.

• Compensation should reflect the magnitude of the harm and the enterprise's financial capacity.
• The amount should have a deterrent effect, particularly where the enterprise is large and prosperous.