logo
EquityWireSC seeks clarity on court power to grant damages in nuclear accident

SC seeks clarity on court power to grant damages in nuclear accident

This story was originally published at 15:28 IST on 17 August 2026
Register to read our real-time news.

Informist, Monday, Aug. 17, 2026

 

NEW DELHI – The Supreme Court Monday asked the government to clarify whether courts are barred from giving fair and just compensation in nuclear accident cases under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, called the SHANTI Act 2025. The top court also asked the Centre to clarify whether there was any conflict of interest in appointing members to the regulatory body under the 2025 Act.

 

A bench led by Chief Justice of India Surya Kant observed that there was too much apprehension and pointed out that even if Parliament has capped the liability of nuclear plant operators, it does not preclude the court from granting a fair and just compensation. The court's observation came on arguments that exempting nuclear plant suppliers from liability and capping operators' liability violates the Supreme Court's Constitution Bench principle of absolute and unlimited liability for hazardous industries.

 

The top court asked the Centre to clarify its position on the appointment of members of the Atomic Energy Regulatory Body under section 17 (4) of the SHANTI Act on the recommendation of the search and selection panel constituted by the Atomic Energy Commission. The petitioners had argued that the Atomic Energy Commission also operates nuclear power plants, so, therefore, there is a conflict of interest.

 

The apex court was hearing a petition by a group of petitioners, including professors and scientists, led by former bureaucrat E.A.S. Sarma challenging the provisions of the 2025 Act as it allows the private sector and foreign companies to operate nuclear power plants in India and has also capped the liability of these operators at an absurdly low level and exempted the supplier from any liability, in violation of the Constitution. The petitioners submitted that the 2025 Act violated fundamental rights under Article 14, 19 and 21 of the Constitution.

 

The petitioners said the highest liability of the largest nuclear plant operator is only INR 30 billion. The cost of the nuclear accidents at Chernobyl in the former Soviet Union and Fukushima in Japan were in excess of more than a hundred times the current cap on the liability under the 2025 Act, the petitioners said.

 

The SHANTI Act 2025 enables consolidation and modernisation of India's nuclear legal framework. It supports the country's clean-energy transition and the long-term objective of achieving 100 gigawatt nuclear energy capacity by 2047. The bill was passed by Parliament in December and repealed the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010.  End

 

Reported by Surya Tripathi

Edited by Shubhayan Bhattacharya

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.

To read more please subscribe

Share this Story:

twitterlinkedinwhatsappmaillink

Related Stories