the civil liability for nuclear damage bill, 2010—————arrangement of clauses—————chapter ipreliminaryclauses1 short title, extent, application and commencement 2 definitions chapter ii liability for nuclear damage3 atomic energy regulatory board to notify nuclear incident 4 liability of operator 5 operator not liable in certain circumstances 6 limits of  liability 7 liability of central government 8 operator to maintain insurance or financial securities chapter iii claims commissioner9 compensation for nuclear damage and its adjudication10 qualifications for appointment as claims commissioner 11 salary, allowances and other terms and conditions of service of claimscommissioner12 adjudication procedure and powers of claims commissioner chapter iv claims and awards13 inviting application for claims by claims commissioner 14 persons entitled to make application for nuclear damage 15 procedure for making application before claims commissioner 16 award by claims commissioner 17 operator's right of recourse 18 extinction of right to claim chapter v nuclear damage claims commission19 establishment of nuclear damage claims commission 20 composition of commission 21 term of office 22 salary and allowances and other terms and conditions of service of chairperson andmembers23 filling up of vacancies 24 resignation and removal 25 chairperson or member deemed to retire from service 26 suspension of pension 27 prohibition of acting as arbitrator 28 prohibition of practice clauses29 powers of chairperson 30 officers and other employees of commission 31 application for compensation before commission 32 adjudication procedure and powers of commission 33 transfer of pending cases to commission 34 proceedings before claims commissioner or commission to be judicial proceedings 35 exclusion of jurisdiction of civil courts 36 enforcement of awards 37 annual report 38 dissolution of commission in certain circumstances chapter vi offences and penalties39 offences and penalties 40 offences by companies 41 offences by government departments 42 cognizance of offences chapter vii miscellaneous43 power to give directions 44 power to call for information 45 exemption from application of this act 46 act to be in addition to any other law 47 protection of action taken in good faith 48 power to make rules 49 power to remove difficulties the civil liability for nuclear damage bill, 2010 a billto provide for civil liability for nuclear damage, appointment of claims commissioner, establishment of nuclear damage claims commission and for matters connected therewith or incidental thereto be it enacted by parliament in the sixty-first year of the republic of india as follows:— chapter i preliminary(2)  it extends to the whole of indiashort title, extent, application and commencement(3) it also applies to nuclear damage suffered—(a) in or over the maritime areas beyond the territorial waters of india;80 of 1976(b) in or over the exclusive economic zone of india as referred to in section 7 of the territorial waters, continental shelf, exclusive economic zone and other maritime zones act, 1976;44 of 1958(c) on board or by a ship registered in india under section 22 of the merchant shipping act, 1958 or under any other law for the time being in force;22 of 1934(d) on board or by an aircraft registered in india under clause (d) of sub-section(2) of section 5 of the aircraft act, 1934 or under any other law for the time being in force; (e) on or by an artificial island, installation or structure under the jurisdiction of india (4) it shall come into force on such date as the central government may, by notification, appoint; and different dates may be appointed for different provisions of this act, and any reference in any such provision to the commencement of this act shall be construed as a reference to the coming into force of that provisiondefinitions2   in this act, unless the context otherwise requires,—(a) "chairperson" means the chairperson of the commission appointed under sub-section (1) of section 20;(b) "claims commissioner" means the claims commissioner appointed under sub-section (2) of section 9;(c) "commission" means the nuclear damage claims  commission  established under section 19;(d) "member" means a member of the  commission appointed under sub-section(1) of section 20; (e) "notification" means a notification published in the official  gazette and the term "notify" shall be construed accordingly;(f) "nuclear damage'' means—(i)  loss of life or  personal injury to a person; or (ii) loss of, or damage to, property, caused by or arising out of a nuclear incident, and includes each of the following to the extent notified by the central government; (iii) any economic loss, arising from the loss or damage referred to in clauses (i) or (ii) and not included in the claims made under those clauses, if incurred by a person entitled to claim such loss or damage;(iv) costs of measures of reinstatement of impaired environment caused by a nuclear incident, unless such impairment is insignificant, if such measures are actually taken or to be taken and not included in the claims made under clause (ii); (v) loss of income deriving from an economic interest in any use or enjoyment of the environment, incurred as a result of a significant impairment of that environment caused by a nuclear  incident, and  not  included  in the claims under clause (ii); (vi) the costs of preventive measures, and further loss or damage caused by such measures;(vii) any other economic loss, other than the one caused by impairment of the environment referred to in clauses (iv) and (v), in so far as it is permitted by the general law on civil liability in force in india and not claimed  under any such law, in the case of sub-clauses (i) to (v) and (vii) above, to the extent the loss or damage arises out of, or results from, ionizing radiation emitted by any source of radiation inside a nuclear installation, or emitted from nuclear fuel or radioactive products or waste in, or of, nuclear material coming from, originating in, or sent to, a nuclear installation, whether so arising from the radioactive properties of such matter, or from a combination of radioactive properties with toxic, explosive or other hazardous properties of such matter; (g)  "nuclear fuel" means any material which is capable of producing energy by a self-sustaining chain process of nuclear fission; (h) "nuclear incident" means any occurrence or series of occurrences having the same origin which causes nuclear damage or, but only with respect to preventive measures, creates a grave and imminent threat of causing such damage;(i) "nuclear installation" means— (a) any nuclear reactor other than one with which a means of transport is equipped for use as a source of power, whether for propulsion thereof or for any other purpose; (b) any facility using nuclear fuel for the production of nuclear material, or any facility for the processing of nuclear material, including re-processing of irradiated nuclear fuel; and (c) any facility where nuclear material is stored (other than storage incidental to the carriage of such material) explanation— for the purpose of this clause,  several nuclear installations of one operator which are located at the same site shall be considered as a single nuclear installation;(j) "nuclear material" means and includes— (i) nuclear fuel (other than natural uranium or depleted uranium) capable of producing energy by a self-sustaining chain process of nuclear fission outside a nuclear reactor, either by itself or in combination with some other material; and(ii) radioactive products or waste;(k)  "nuclear reactor" means any structure containing nuclear fuel in such an arrangement that a self-sustaining chain process of nuclear fission  can occur therein without an additional source of neutrons;(l) "operator", in relation to a nuclear installation, means the person designated by the central government as the operator of that installation;(m) "prescribed" means prescribed by rules made under this act; (n) "preventive measures" means any reasonable measures taken by a person after a nuclear incident has occurred to prevent or minimise damage referred to in sub-clauses (i) to (v) and (vii) of clause (f), subject to the  approval of the central government; (o) "radioactive products or waste" means any radioactive material produced in, or any material made radioactive by exposure to, the radiation incidental to the production or utilisation of nuclear fuel, but does not include radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial or industrial purpose; (p) "special drawing rights" means special drawing rights as determined by the international monetary fund chapter ii liability for nuclear damage33 of 19623 (1) the atomic energy regulatory board constituted under the atomic energy act, 1962 shall, within a period of fifteen days from the date of occurrence of a nuclear incident, notify such nuclear incident:atomic energy regulatory board to notify nuclear incident provided that where the atomic energy regulatory board is satisfied that the gravity of threat and risk involved in a nuclear incident is insignificant, it shall not be required to notify such nuclear incident (2) the atomic energy regulatory board shall, immediately after the notification under sub-section (1) is issued, cause wide publicity to be given to the occurrence of such nuclear incident, in such manner as it may deem fitliability of operator4 (1) the operator of the nuclear installation shall be liable for nuclear damage caused by a nuclear incident —(a) in that  nuclear installation; or (b) involving nuclear material coming from, or originating in, that nuclear installation and occurring before — (i)  the liability for nuclear incident involving such nuclear material has been assumed, pursuant to a written agreement, by another operator; or(ii) another operator has taken charge of such nuclear  material; or (iii) the person duly authorised to operate a nuclear reactor has taken charge of the nuclear material intended to be used in that reactor with which means of transport is equipped for use as a source of power, whether for propulsion thereof or for any other purpose; or(iv) such nuclear material has been unloaded from the means of transport by which it was sent to a person within the territory of a foreign state; or (c) involving nuclear material sent to that nuclear installation and occurring after—(i) the liability for nuclear incident involving such nuclear  material has been transferred to that operator, pursuant to a written agreement, by the operator of another nuclear installation; or (ii) that operator has taken charge of such nuclear  material; or (iii) that operator has taken charge of such nuclear  material from a person operating a nuclear reactor with which a means of transport is equipped for use as a source of power, whether for propulsion thereof or for any other purpose; or(iv) such nuclear  material has been loaded, with the written consent of that operator, on the means of transport by which it is to be carried from the territory of a foreign state(2) where more than one operator is liable for nuclear damage, the liability of the operators so involved shall, in so far as the damage attributable to each operator is not separable, be joint and several:provided that the total liability of such operators shall not exceed the extent of liability specified under sub-section (2) of section 6(3) where several nuclear installations of one and the same operator are involved in a nuclear incident, such operator shall, in respect of each such nuclear installation, be liable to the extent of liability specified under sub-section (2) of section 6explanation—  for the purposes of this section,—(a) where nuclear damage is caused by a nuclear incident occurring in a nuclear installation on account of temporary storage of material-in-transit in such installation, the person responsible for transit of such material shall be deemed to be the operator; (b) where a nuclear damage is caused as a result of nuclear incident during the transportation of nuclear material, the consignor shall be deemed to be the operator; (c) where any written agreement has been entered into between the consignor and the consignee or, as the case may be, the consignor and the carrier of nuclear material, the person liable for any nuclear damage under such agreement shall be deemed to be the operator; (d) where both nuclear damage and damage other than nuclear damage have been caused by a nuclear incident or, jointly by a nuclear incident and one or more other occurrences, such other damage shall, to the extent it is not separable from the nuclear damage, be deemed to be a nuclear damage caused by such nuclear incident 5 (1)  an operator shall not be liable for any nuclear damage where such damage is caused by a nuclear incident directly due to—operator not liable in certain circumstances (i)  a grave natural disaster of an exceptional character; or (ii) an act of armed conflict, hostility, civil war, insurrection or terrorism (2) an operator shall not be liable for any nuclear damage caused to—(i) the nuclear installation itself and any other nuclear installation including a nuclear installation under construction, on the site where such installation is located; and (ii) to any property on the same site which is used or to be used in connection with any such installation; or(iii) to the means of transport upon which the nuclear material involved was carried at the time of nuclear incident: provided that any compensation liable to be paid by an operator for a nuclear damage shall not have the effect of reducing the amount of his liability in respect of any other claim for damage under any other law for the time being in force (3) where any nuclear damage is suffered by a person on account of his own negligence or from his own acts of commission or omission, the operator shall not be liable to such personlimits of liability6 (1) the maximum amount of liability in respect of each nuclear incident shall be the rupee equivalent of three hundred million special drawing rights (2) the liability of an operator for each nuclear incident shall be rupees five hundred crores: provided that the central government may, having regard to the extent of risk involved in a nuclear installation, by notification, either increase or decrease the amount of liability of the operator:provided further that where the amount of liability is decreased, it shall not be less than rupees one hundred crore: provided also that the amount of liability shall not include any interest or cost of proceedings7  the central government shall be liable for nuclear damage in respect of a nuclear incident, —liability of central government (a) where the liability exceeds the amount of liability of an operator specified under sub-section (2) of section 6, to the extent such liability exceeds such liability of the operator; (b) occurring in a nuclear installation owned by it; and (c) occurring on account of causes specified in clauses (i) and (ii) of subsection (1) of section 5 8  (1) the operator shall, before he begins operation of his nuclear installation, take out insurance policy or such other financial security, covering his liability under sub-section (2) of section 6, in such manner as may be prescribedoperator to maintain insurance or financial securities(2) the operator shall from time to time renew the insurance policy or other financial security referred to in sub-section (1), before the expiry of the period of validity thereof(3) the provisions of sub-sections (1) and (2) shall not apply to a nuclear installation owned by the central government chapter iii claims commissioner 9  (1) whoever suffers nuclear damage shall be entitled to claim compensation in accordance with the provisions of this actcompensation for nuclear damage and its adjudication(2) for the purposes of adjudicating upon claims for compensation in respect of nuclear damage, the central government shall, by notification, appoint one or more claims commissioners for such area, as may be specified in that notification10 a person shall not be qualified for appointment as a claims commissioner unless he—(a) is or has been or qualified to be a district judge; orqualifications for appointment as claims commissioner(b) is or has been in the service of the central government and has held the post of the joint secretary to the government of india or any other equivalent post in the central government for a period of not less than five years and possesses special knowledge in law relating to nuclear liability arising out of nuclear incident 11  the salary and allowances payable to and other terms and conditions of service of claims commissioner shall be such as may be prescribedsalary, allowances and other terms and conditions of service of claims commissioner12  (1) for the purposes of adjudication of claims under this act, the claims commissioner shall follow such procedure as may be prescribedadjudication, procedure and powers of claims commissioner (2) for the purpose of holding inquiry, the claims commissioner may associate with him such persons having expertise in the nuclear field or such other persons and in such manner as may be prescribed(3)  where any person is associated under sub-section (2), he shall be paid such remuneration, fee or allowance, as may be prescribed(4) the claims commissioner shall, for the purposes of discharging his functions under this act, have the same powers as are vested in a civil court under the code of civil procedure, 1908, while trying a suit, in respect of the following matters, namely:—(a)  summoning and enforcing the attendance of any  person and  examining him on oath;(b) the discovery and production of  documents; (c)   receiving evidence on affidavits; (d)  requisitioning any public record or copies thereof from any court or office; (e) issuing of commission for the examination of any witness; (f) any other matter which may be prescribed2 of 1974 (5) the claims commissioner shall be deemed to be a civil court for the purposes of section 195 and chapter xxvi of the code of criminal procedure, 1973 chapter  iv claims and awards13  after the notification of nuclear incident under sub-section (1) of section 3, the claims commissioner, having jurisdiction over the area, shall cause wide publicity to be given, in such manner as he deems fit, for inviting applications for claiming compensation for nuclear damageinviting application for claims by claims commissioner14 an application for compensation before the claims commissioner or the commission, as the case may be, in respect of nuclear damage may be made by—| (           | a   | ) a person who has sustained injury; or                         ||-------------|-----|-----------------------------------------------------------------|| person      |     |                                                                 || entitled to |     |                                                                 || make        |     |                                                                 || application |     |                                                                 || for nuclear |     |                                                                 || damage     |     |                                                                 || (           | b   | ) the owner of the property to which damage has been caused; or |(c) the legal representatives of the deceased; or (d) any agent duly authorised by such person or owner or legal representatives15 (1) every application for compensation before the claims commissioner for nuclear damage shall be made in such form, containing such particulars and accompanied by such documents, as may be prescribedprocedure for making application before claims commissioner(2) subject to the provisions of section 18, every application under sub-section (1)shall be made within a period of three years from the date of knowledge of nuclear damage by the person suffering such damageaward by claims commissioner16 (1) on receipt of an application under sub-section (1) of section 15, the claims commissioner shall, after giving notice of such application to the operator and affording an opportunity of being heard to the parties, dispose of the application within a period of three months from the date of such receipt and make an award accordingly(2) while making an award under this section, the claims commissioner shall not take into consideration any benefit, reimbursement or amount received by the applicant in pursuance of contract of insurance taken by him or for members of his family or otherwise5 of 1908(3)  where an operator is likely to remove or dispose of his property with the object of evading payment by him of the amount of the award, the claims commissioner may, in accordance with the provisions of rules 1 to 4 of order xxxix of the first schedule to the code of civil procedure, 1908, grant a temporary injunction to restrain such act (4) the claims commissioner shall arrange to deliver copies of the award to the parties within a period of fifteen days from the date of the award(5) every award made under sub-section (1) shall be final17 the operator of a nuclear installation shall have a right of recourse where — (a)  such right is expressly provided for in a contract in writing;operator's right of recourse (b) the nuclear incident has resulted from the wilful act or gross negligence on the part of the supplier of the material, equipment or services, or of his employee; (c) the nuclear incident has resulted from the act of commission or omission of a person done with the intent to cause nuclear damageextinction of right to claim18 the right to claim compensation for any nuclear damage caused by a nuclear incident shall extinguish if such claim is not made within a period of ten years from the date of incident notified under sub-section (1) of section 3: provided that where a nuclear damage is caused by a nuclear incident involving nuclear material which, prior to such nuclear incident, had been stolen, lost, jettisoned or abandoned, the said period of ten years shall be computed from the date of such nuclear incident, but, in no case, it shall exceed a period of twenty years from the date of such theft, loss, jettison or abandonment chapter v nuclear damage claims commission19 where the central government, having regard to the injury or damage caused by a nuclear incident, is of the opinion that—establishment of nuclear damage claims commission(a) the amount of compensation may exceed the limit specified under sub-section(2) of section 6; or(b) it is expedient and necessary that  claims for such damage be adjudicated by the commission instead of claims commissioner; or(c) it is necessary in the public interest to provide special measures for speedy adjudication of claims for compensation, the central government may, by notification, establish a nuclear damage claims commission, for the purposes of this act20  (1) the commission shall consist of a chairperson and such other members, not exceeding six, as the central government may, by notification, appointcomposition of commission (2)  the chairperson and other members of the commission shall be appointed by the central government on the recommendations of a committee consisting of —|  (   | a   | ) cabinet secretary                      | -   | chairman;   ||------|-----|------------------------------------------|-----|-------------|| (    | b   | ) secretary, department of atomic energy | -   | member;     || (    | c   | ) secretary, ministry of law and justice | -   | member     |(3) a person shall not be qualified for appointment as the chairperson of the commission unless he has attained the age of fifty-five years and is or has been or qualified to be a judge of a high court: provided that no appointment of a sitting judge shall be made except after consultation with the chief justice of india(4) a person shall not be qualified for appointment as a member unless he has attained the age of fifty-five years and— (a) has held or is holding or qualified to hold, the post of additional secretary to the government of india or any other equivalent post in the central government and possesses special knowledge in law relating to nuclear liability arising out of nuclear incident; or(b) has been a claims commissioner for five yearsterm of office 21  the chairperson or a member, as the case may be, shall hold office as such for a term of three years from the date on which he enters upon his office and shall be eligible for re-appointment for another term of three years: provided that no person shall hold office as such chairperson or member after he has attained the age of sixty-seven years 22 the salary and allowances payable to and other terms and conditions of service, including pension, gratuity and other retirement benefits, of the chairperson and  other members shall be such as may be prescribed: provided that no salary, allowances and other terms and conditions of service of the chairperson or other members shall be varied to his disadvantage after his appointmentsalary, allowances and other terms and conditions of service of chairperson and members filling up of vacancies23 if, for reasons other than temporary absence, any vacancy occurs in the office of the chairperson or member, as the case may be, the central government shall appoint another person in accordance with the provisions of this act to fill such vacancy and the proceedings may be continued before the commission from the stage at which it was, before the vacancy is filledresignation and removal 24 (1) the chairperson or a member may, by a notice in writing under his hand addressed to the central government, resign his office:provided that the chairperson or the member shall, unless he is permitted by the central government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier(2) the central government shall remove from office the chairperson or a member who—(a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the central government, involves moral turpitude; or(c) has become physically or mentally incapable of acting as a member; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or(e) has so abused his position as to render his continuance in office detrimental to the public interest: provided that no member shall be removed under clause (d) or clause (e) unless he has been given an opportunity of being heard in the matterchairperson or member deemed to retire from service25 a person who, immediately before the date of assuming office as a chairperson or a member, was in service of the government, shall be deemed to have retired from service on the date on which he enters upon office as such, but his subsequent service as the chairperson or a member shall be reckoned as continuing approved service counting for pension in service to which he belongedsuspension of pension26  if a person who, immediately before the date of assuming office as the chairperson or a member was in receipt of or being eligible so to do, has opted to draw, a pension, other than a disability or wound pension, in respect of any previous service under the central government, his salary in respect of service as the chairperson or a member shall be reduced— (a) by the amount of that pension; and (b) if he had, before assuming office, received, in lieu of a portion of the pension due to him in respect of such previous service, the commuted value thereof, by the amount of that portion of the pension 27 no person shall, while holding office as a chairperson or a member, act as an arbitrator in any matterprohibition of acting as arbitrator prohibition of practice28 on ceasing to hold office, the chairperson or a member shall not appear, act or plead before the commissionpowers of chairperson 29 the chairperson shall have the power of superintendence in the general administration of the commission and exercise such powers as may be prescribed 30 (1) the central government shall provide the commission with such officers and other employees as it may deem fitofficers and other employees of commission(2) the salary and allowances payable to and the terms and other conditions of service of officers and other employees of the commission shall be such as may be prescribed31 (1) every application for compensation before the commission for nuclear damage shall be made in such form, containing such particulars and accompanied by such documents, as may be prescribedapplication for compensation before commission(2) subject to the provisions of section 18, every application under sub-section (1)shall be made within a period of three years from the date of knowledge of nuclear damage by the person suffering such damage32 (1) the commission shall have original jurisdiction to adjudicate upon every application for compensation filed before it under sub-section (1) of section 31 or transferred to it under section 33, as the case may beadjudication procedure and powers of commission(2) upon transfer of cases to the commission under section 33, the commission shall hear such applications from the stage at which it was before such transfer(3) the chairperson may constitute benches comprising of not more than three members of the commission for the purpose of hearing of claims and any decision thereon shall be rendered by a majority of the members hearing such claims5 of 1908(4) the commission shall not be bound by the procedure laid down in the code of civil procedure, 1908 but shall be guided by the principles of natural justice and subject to the other provisions of this act and of any rules made thereunder, the commission shall have the power to regulate its own procedure including the places and the times at which it shall have its sittings5 of 1908(5) the commission shall have, for the purposes of discharging its functions under this act, the same powers as are vested in a civil court under the code of civil procedure, 1908, while trying a suit, in respect of the following matters, namely: — (a)  summoning and enforcing the attendance of any  person and  examining himon oath;(b) the discovery and production of  documents; (c)   receiving evidence on affidavits;(d)  requisitioning any public record or copies thereof from any court or office; (e) issuing of commission for the examination of any witness; (f) any other matter which may be prescribed(6) the commission shall, after giving notice of application to the operator and after affording an opportunity of being heard to the parties, dispose of such application within a period of three months from the date of such receipt and make an award accordingly(7) while making an award under this section, the commission shall not take into consideration any benefit, reimbursement or amount received by the applicant in pursuance of any contract of insurance or otherwise5 of 1908(8)  where an operator is likely to remove or dispose of his property with the object of evading payment by him of the amount of the award, the commission may, in accordance with the provisions of rules 1 to 4 of order xxxix of the first schedule to the code of civil procedure, 1908, grant a temporary injunction to restrain such act (9) the commission shall arrange to deliver copies of the award to the parties concerned within a period of fifteen days from the date of such award(10)  every award made under sub-section (6) shall be final| 33                                                                                         ||---------------------------------------------------------------------------------------------|| immediately before the date of establishment of the commission under section 19 shall stand || transferred on that date to the commission                                                 || transfer of                                                                                 || pending cases                                                                               || t o                                                                                         || commission                                                                                 |45 of 1860| 34                                                                                       ||-------------------------------------------------------------------------------------------|| act shall be deemed to be judicial proceeding within the meaning of sections 193, 219 and || 228 of, and for the purposes of section 196 of, the indian penal code                    || proceedings                                                                               || before claims                                                                             || commissioner                                                                              || or                                                                                        || commission                                                                                || to be judicial                                                                            || proceedings                                                                              || exclusion of                                                                              || jurisdiction of                                                                           || civil courts                                                                             |35  no civil court shall have jurisdiction to entertain any suit or proceedings in respect of any matter which the claims commissioner or the commission, as the case may be, is empowered to adjudicate under this act and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this actenforcement of awards36  (1) when an award is made under sub-section (1) of section 16 or under subsection (6) of section 32, —(a) the insurer or any person, as the case may be, who under the contract of insurance or financial security under section 8 is required to pay any amount in terms of such award and to the extent of his liability under such contract, shall deposit that amount within such time and in such manner as the claims commissioner or the commission, as the case may be, may direct; and(b) the operator shall, subject to the maximum liability specified under subsection (2) of section 6, deposit the remaining amount by  which  such  award  exceeds the amount deposited under clause (a) (2) where any person referred to in sub-section (1) fails to deposit the amount of award within the period specified in the award, such amount shall be recoverable from such person as arrears of land revenue(3) the amount deposited under sub-section (1) shall be disbursed to such person as may be specified in the award within a period of fifteen days from the date of such depositannual report37   the commission shall prepare, in such form and at such time in each financial year, as may be prescribed, an annual report giving full account of its activities during that financial year and submit a copy thereof to the central government which shall cause the same to be laid before each house of parliamentdissolution of commission in certain circumstances38 (1) where the central government is satisfied that the purpose for which the commission established under section 19 has served its purpose, or where the number of cases pending before such commission is so less that it would not justify the cost of its continued function, or where it considers necessary or expedient so to do, the central government may, by notification, dissolve the commission (2) with effect from the date of notification of dissolution of commission  under subsection (1), —(a) the proceeding, if any, pending before the commission as on the date of such notification shall be transferred to the claims commissioner to be appointed by the central government under sub-section (2) of section 9;(b) the chairperson and all members of the commission shall be deemed to have vacated their offices as such and they shall not be entitled to any compensation for premature termination of their office;(c) officers and other employees of the commission shall be transferred to such other authority or offices of the central government, in such manner,  as may be prescribed: provided that the officers and other employees so transferred, shall be entitled to the same terms and conditions of service as would have been held by them in the commission: provided further that where an officer or an employee of the commission refuses to join the services in such other authority or office, he shall be deemed to have resigned and shall not be entitled to any compensation for premature termination of contract of service; (d) all assets and liabilities of the commission shall vest in the central government (3) notwithstanding the dissolution of the commission under sub-section (1), anything done or any action taken or purported to have been done or taken including any order made or notice issued or any appointment, confirmation or declaration made or any document or instrument executed or any direction given by the commission before such dissolution, shall be deemed to have been validly done or taken(4) nothing in this section shall be construed to prevent the central government to establish the commission subsequent to the dissolution of the commission in accordance with the provisions of this act chapter vi offences and penalties 39 (1)  whoever—offences and penalties (a) contravenes any rule made or any direction issued under this act; or (b) fails to comply with the provisions of section 8; or (c) fails to deposit the amount under section 36, shall be punishable with imprisonment for a  term which may extend to five years or with fine or with both(2)  whoever fails to comply with any direction issued under section 43 or obstructs any authority or person in the exercise of his powers under this act shall be punishable with imprisonment for a term which may extend to one year or with fine or with bothoffences by companies40 (1) where an offence under this act has been committed by a company, every person who at the time the offence was committed, was directly in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: provided that nothing contained in this sub-section shall render any such person liable to any punishment under this act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence (2)  notwithstanding anything contained in sub-section (1), where any offence under this act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordinglyexplanation - for the purposes of this section,—(a) "company" means any body corporate and includes a firm or other association of individuals;(b) "director", in relation to a firm, means a partner in the firmoffences by government departments41 where an offence under this act has been committed by any department of the government, the head of the department shall be deemed to be guilty of the offence and shall be liable to be proceeded against and  punished accordingly: provided that nothing contained in this section shall render such head of the department liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offencecognizance of offences 42  no court inferior to that of a metropolitan magistrate or a judicial magistrate of the first class shall try any offence under this act: provided that cognizance of such offence shall not be taken except on a complaint made by the central government or any authority or officer authorised in this behalf by that government chapter vii miscellaneouspower to give directions43  the central government may, in exercise of its powers and performance of its functions under this act, issue such directions, as it may deem fit, for the purposes of this act, to any operator, person, officer, authority or body and such operator, person, officer, authority or body shall be bound to comply with such directions44 the central government may call for such information from an operator as it may deem necessary45 the central government may, by notification, exempt any nuclear installation from the application of this act where, having regard to small quantity of nuclear material, it is of the opinion that the risk involved is insignificantpower to call for informationexemption from application of this actact to be in addition to any other law 46  the provisions of this act shall be in addition to, and not in derogation of, any other law for the time being in force, and nothing contained herein shall exempt the operator from any proceeding which might, apart from this act, be instituted against such operatorprotection of action taken in good faith47 no suit, prosecution or other legal proceedings shall lie against the central government or the person, officer or authority in respect of anything done by it or him in good faith in pursuance of this act or of any rule or order made, or direction issued, thereunderpower to make rules48 (1) the central government may, by notification, make rules for carrying out the purposes of this act (2) in particular, and without prejudice to the generality of the foregoing powers such rules  may provide for — (a)  the other financial security and the manner thereof under sub-section (1) ofsection 8; (b) the salary and allowances payable to and the other terms and conditions ofservice of claims commissioner under section 11; (c) the procedure to be followed by claims commissioner  under sub-section (1)of section 12; (d) the person to be associated by claims commissioner and the manner thereof, under sub-section (2) of section 12; (e) the remuneration, fee or allowances of associated person under sub-section(3) of section 12; (f) any other matter under clause (f) of sub-section (4) of section 12; (g) the form of application, the particulars it shall contain and the documents it shall accompany, under sub-section (1) of section 15;(h) the salary and allowances payable to and other terms and conditions of service of chairperson and other members, under section 22;(i) the powers of chairperson under section 29; (j) the salary and allowances payable to and the terms and other conditions of service of officers and other employees of the commission, under sub-section (2) of section 30;(k) the form of application, the particulars it shall contain and the documents it shall accompany, under sub-section (1) of section 31; (l) any other matter under clause (f) of sub-section (5) of section 32; (m) the form and the time for preparing annual report by commission under section 37;(n) the manner of transfer of officers and other employees of the commission under clause (c) of sub-section (2) of section 38 (3) every rule made under this act by the central government 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 successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule 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 rulepower to remove difficulties49  (1) if any difficulty arises in giving effect to the provisions of this act, the central government may, by order published in the official gazette, make such provisions, not inconsistent with the provisions of this act, as appear to it to be necessary or expedient for removing the difficulty:provided that no order shall be made under this section after the expiry of three years from the commencement of this act (2) every order made under this section shall, as soon as may be after it is made, be laid before each house of parliament statement of objects and reasonsthe nuclear industry in india is growing and as a result of the steps taken particularly in the recent period, it is expected to form an important part of the energy-mix of the country while making the design, and during construction and operation of nuclear power plants every care is taken to ensure safety of the plant, public and the environment  however, in the unlikely event of a nuclear incident or accident, there may be damage to individuals, property and environment on a large scale the geographical scope of damage caused by a nuclear accident may not be confined to national boundaries and it may have trans-boundary effects in such an event, it is desirable that protection is accorded to victims of such incident or accident by a third party liability regime  it is necessary to give compensation to persons if they suffer nuclear damage as a result of a nuclear incident and therefore it is important to make provision to ensure clarity of liability and the requirement to pay compensation2 at present, the nuclear power plants and facilities in india are owned by the central government or its public sector undertakings therefore, any incident or accident that happens in these installations, and the liability issues arising therefrom, are the responsibility of the central government  this, however, leaves any trans-boundary liability to uncertainty there is also a need to address the issue of nuclear liability during transport of nuclear material3 at the international level there are four instruments for nuclear liability, ie, the 1960paris convention, 1963 vienna convention, 1997 protocol to amend vienna convention and 1997 convention on supplementary compensation for nuclear damage convention on supplementary compensation was developed under the auspices of international atomic energy agency and which deal with nuclear liability  it provides for treaty relations among all countries that accept the basic principles of nuclear liability law and an international fund to compensate nuclear damage in the event of nuclear incident  the said convention on supplementary compensation envisages a two tier system with respect to the amount of compensation, eg, installation state to ensure availability of the amount of compensation (at least 300 million special drawing rights), and international fund for which all contracting parties are obliged to contribute the amount based on a formula for calculation of contribution4 convention on supplementary compensation is a free standing instrument open to all countries  it offers a country the means to become part of the global regime without having to become a member of the paris convention or the vienna convention  however, all countries party to the convention on supplementary compensation are expected to abide by the basic principles of the nuclear liability law  for this reason, the convention on supplementary compensation sets out a number of rules, which are consistent with the general principles of both the paris convention and the vienna convention  any state willing to join the convention on supplementary compensation will have to ensure that its national legislation is consistent with the provisions laid down in the annex to convention on supplementary compensation5 many countries which are engaged in nuclear power generation are having their own legislations and some of them are parties to one or other international regimes6 india is not a party to any of the nuclear liability conventions mentioned aboveindian nuclear industry has been developed within the context of a domestic framework established by the atomic energy act, 1962  there is no provision in the said act about the nuclear liability or compensation for nuclear damage due to nuclear accident or incident and no other law deals with nuclear liability for nuclear damage in the event of nuclear incident7 it is, therefore, considered necessary to enact a legislation which provides for nuclear liability that might arise due to a nuclear incident and also on the necessity of joining an appropriate international liability regime8 the bill seeks to achieve the above objectivesnew delhi;the  11th  february, 2010prithviraj chavan notes on clausesclause 2— this  clause defines certain words and expressions used in the bill including 'nuclear damage', 'nuclear incident', 'nuclear installation', 'nuclear material', 'nuclear reactor ', operator, etcclause 3— this  clause contains provisions for notification of nuclear incident it requires the atomic energy  regulatory  board to  notify nuclear   incident within a period of fifteen days from the date of its  occurrence and give wide  publicity   to the occurrence of such  nuclear incident however, the atomic energy  regulatory  board would not be required   to notify  nuclear incident where it is satisfied that the gravity of threat and risk involved in such nuclear incident is insignificantclause 4—this clause contains provisions relating  to liability of operator it, inter alia,  provides that the operator shall be liable for nuclear damage caused by a nuclear incident occurring in that nuclear installationthe sub-clause (1)  contains provisions for liability  of the operator in respect of a nuclear damage caused by a  nuclear incident involving nuclear material coming from  or originating in  that nuclear installation  before  and after the operator has assumed the liabilityit also provides that where  more than one operator is liable for nuclear damage, the liability of the operators  so  involved shall be joint and several  if the damage attributable to each operator is not separable however, the total liability of such operators shall not exceed the extent of liability  specified  in sub-clause (2) of clause  6 of the bill it also provides that where several nuclear installations of one and the same operator are involved in a nuclear incident, such operator  shall, in respect  of each such nuclear  installation, be liable to the extent of liability specified  in sub-clause  (2) of clause 6 of the billexplanation to sub-clause  (3) of  this clause specifies the circumstances  under which a person shall be deemed  to be an operatorclause 5—this clause  provides  for circumstances  under which  an  operator shall not be liable for the nuclear damage it provides  that  where a nuclear damage  is caused   by nuclear  incident directly due to a grave natural disaster  of an exceptional character or by acts of armed conflict, hostility, civil war, insurrection or terrorism, the operator shall not be liable it further  provides that  the operator  shall not be liable for any nuclear damage caused to (a)  the nuclear  installation itself or any other nuclear installation including a nuclear   installation under construction, on the site where such installation is located; (b) any property on the same site which is used or to be used in connection with any such installation; (c)  the means of transport upon which the nuclear material involved  was carried at the time of nuclear incident however, any compensation liable to be paid  by the operator for a nuclear damage shall not have the effect of reducing the amount of his liability in respect of any other claim  for damage under any other law for the time being  in force however, the operator  shall not be liable (a) where a nuclear  damage is suffered  by a person on account  of his own negligence; or (b)  where a nuclear damage  occurs from the acts of commission or omission of a person,  to each person suffering such damageclause 6—this clause  contains provisions relating  to limits of liability this clause provides that the maximum  amount of liability  in respect   of each nuclear incident shall be the rupee equivalent  of three hundred  million special drawing rights  and the liability of an operator for each nuclear incident  shall be rupees five hundred  crores however, it  empowers the central   government   to  increase or decrease, by notification, the amount of liability of the operator, having regard to the extent  of risk involved in a nuclear installation but, such liability shall not be decreased less than rupees one hundred crore it also provides that the amount of liability of the operator  shall not include any interest or cost of proceedingsclause 7—this clause  contains provisions for the liability of the central  governmentit seeks to fix the liability on the central government  in certain   circumstances and provides that the central government  shall be liable for  nuclear damage in respect of a nuclear incident (a) to the extent  such liability exceeds the amount of liability of the operator specified in sub-clause (2) of clause 6; or (b) where  such nuclear damage occurs in a nuclear installation owned  by it; or (c)  occurring directly due to a grave natural disaster of an exceptional character or by acts of armed conflict, hostility, civil war, insurrection or terrorismclause 8—this   clause imposes an obligation upon the operator to take out, before beginning the operation of a nuclear installation, insurance policy or such other financial security  covering his liability as specified under  sub-clause (2) of clause  6 and to renew the same however, the central government shall not be required to take  out such insurance or financial securitiesclause 9—this clause confers a right upon a person who  suffers  nuclear damage  to claim compensation in accordance  with the provisions of the this act and claims for such compensation shall be adjudicated  by one or more claims commissioners to be appointed by the central governmentclause 10—this clause contains provisions for qualifications for appointment as claims  commissioner it provides that a person shall not be qualified for appointment  as a claims commissioner unless he is, has been or qualified  to be a district judge or is or has been in the service of the central government  and has held  the post of the joint  secretary to the government of india or any other equivalent  post in the central  government  for a period  of not less than five years  and possesses special knowledge in  law relating to nuclear liability arising out of  nuclear incidentclause 11—this clause  contains provisions relating  to the salary and allowances payable to and other terms  and conditions of service of claims commissioner  which  shall be specified  by rules to be made by the central governmentclause 12—this clause  contains provisions for procedure  to be followed by the claims  commissioner and powers  to be exercised  by the claims  commissioner for adjudicating  such   claims the claims commissioner shall have certain powers which are vested in a civil court under the code of civil procedure , 1908, for discharging functions under the proposed legislation it, inter alia,  provides that claims  commissioner shall follow  the procedure  for adjudication of claims  under the proposed  legislation  in the manner  povided by rules  to be made by   the central  government  the claims   commissioner can associate  experts  in the  nuclear  field in the manner provided by  rules for the said purposeclause 13—this clause  contains provisions for inviting  applications   for claims  by the claims commissioner it provides  that the claims  commissioner  shall, after the notification of a nuclear  incident, cause  wide publicity to be given for inviting applications for claiming compensation  for nuclear damageclause 14—this clause  specifies the  category  of persons  who would be entitled  to make application for nuclear damage it provides that an application to the claims commissioner for compensation in respect  of nuclear  damage may be made  by a person who has sustained  injury or by the owner of the property to which damage  has been caused or by the legal representatives  of the deceased or by an authorised agentclause 15—this clause contains procedure for making applications before the claims commissioner it provides that the application for compensation before the claims commissioner for nuclear  damage shall be in the form  and manner provided  by  rules to be made by the central government and such applications  shall be made within a period  of three years  from the date of knowledge of nuclear damage  by the person suffering  such damageclause 16—this clause contains provisions for making  of awards by the claims commissioner it contains provisions relating to procedure to be followed by the claims commissioner on receipt of application for compensation and the manner for making an award this clause requires  that the claims  commissioner shall dispose of the application within a period  of three months from the date of such receipt and make an award  accordingly however, while making the award, the claims  commissioner shall not  take into consideration any benefit, reimbursement or amount received by the applicant in pursuance of contract of insurance taken by him or for members of his family or otherwise it also empowers the claims  commissioner to grant temporary injunction to restrain the operator where he is likely to remove or dispose of  his property with the object of evading payment  by him of the amount of the award, from doing so it also provides  that every  award, so made, shall be finalclause 17—this clause contains provisions relating to right of recourse it provides that the operator of a nuclear installation shall have a right of recourse where such right is expressly provided for in a contract in writing or where the nuclear   incident  has resulted from the wilful act or gross negligence  on the part of the supplier of the material, equipment or services, or of his employee  or where the nuclear incident has resulted from the act of commission or omission of a person done with  the intent   to cause nuclear damageclause 18—this clause contains provisions relating to extinction of right to claim it provides that the right to claim compensation for any nuclear damage caused by a nuclear incident shall extinguish if such claim is not made within a period of ten years from the date of incident notified under sub-clause (1) of clause 3 of the bill however, where  a nuclear damage is caused by a nuclear incident involving nuclear material which, prior to such nuclear incident, had been stolen, lost, jettisoned or abandoned, the said period of ten years shall be computed from the date of such nuclear incident, but, in no case, it shall exceed a period of twenty years from the date of such theft, loss, jettison or abandonmentclause 19—it empowers the central government to establish a nuclear  damage claims commission in certain cases it provides that the central government may, if it is of the opinion that the amount of compensation may exceed the limit specified under subclause (2) of clause 6 of the bill or it is expedient and necessary that claims for such damage should be adjudicated by the commission instead of the claims commissioner or it is necessary in the public interest to provide special measures for speedy adjudication of claims for compensation, establish a nuclear damage claims commissionclause 20—it provides for the composition of the nuclear damage claims commission which would consist of a chairperson and members, not exceeding six, to be appointed  by the central government on the recommendations of a committee consisting of cabinet secretary as chairman, secretary, department of atomic energy and secretary, ministry of law and justice  as members this clause further provides that a person shall not be qualified for appointment as the chairperson of the commission unless he has attained  the age of fifty-five years and is or has been or qualified to be a judge of a hight court the appointment of a sitting judge of a high court shall be made after consultation with the chief justice of india it further provides that a person shall not be qualified for  appointment as a member unless he has attained the age of fifty-five years and has held  or is holding or qualified to hold, the post of additional secretary to the government of india or any other equivalent post in the  central government and possesses special knowledge in law relating to nuclear liability arising out of nuclear incident or has been a claims commissioner for five yearsclause 21—this clause contains provisions for the term of office of the chairperson and members of the nuclear damage claims commission it provides that the chairperson and a member shall hold office as such for a term of three years from the date on which he enters upon his office and shall be eligible for re-appointment for another term of three years however, no person shall hold office as such chairperson or  member after he has attained the age of sixty-seven yearsclause 22—this clause contains provisions relating to the salaries and allowances payable to and other terms and conditions of service, including pension, gratuity and other retirement benefits, of the chairperson and other members of the nuclear damage claims commission and provides that they shall be specified  by rules to be made by the central government however, the salary, allowances and other terms and conditions of service of the chairperson or other members shall not be varied to his disadvantage after his appointmentclause 23—this clause contains provisions for filling up of vacancies in the office of chairperson or members of the nuclear damage claims commission it provides that if, for reasons other than temporary absence, any vacancy occurs in the office of the chairperson or member of the commission, the central government shall appoint another person in accordance with the provisions of this act to fill such vacancy and the proceedings may be continued before the commission from the stage at which it was, before the vacancy is filledclause 24—this clause contains provisions for resignation and removal of the chairperson or member of the nuclear damage claims commission it provides that the chairperson or a member may, by a notice in writing under his hand addressed to the central government, resign his office it further provides that the central government shall remove the chairperson or member from his office under the circumstances specified in this clause and in certain cases, such person shall be given an opportunity of being heard  in the matter before his removalclause 25—this clause contains provisions to provide that  a chairperson or a member shall be deemed to have retired from service it provides that a person in the service of the government immediately before the date of assuming office as a chairperson or a member shall be deemed to have retired from service on the date on which he enters upon his office however, his subsequent service as the chairperson or a member shall be reckoned as continuing approved service counting for pension in service to which he belongedclause 26—this clause contains provisions relating to deduction of pension in certain cases it provides that if a person, immediately before the date of assuming office as the chairperson or a member, was in receipt of, or has opted to draw, a pension, other than a disability or wound pension, in respect of any previous service under the central government, his salary in respect of service as the chairperson or a member shall be reduced by the amount of that pension and where he has received the commuted value in lieu of a portion of the pension due to him in respect of such previous service, his present salary shall be reduced by the amount of that portion of the pension as wellclause 27—this clause contains provisions for prohibition of acting as an arbitratorit provides that no person shall, while holding office as a chairperson or a member of the nuclear damage claims commission, act as an arbitrator in any matterclause 28—this clause contains provisions for prohibition of practice it provides that on ceasing to hold office, the chairperson or a member of the nuclear damage claims commission shall not appear, act or plead before the commissionclause 29—this clause contains provisions relating to powers of the chairperson of the nuclear damage claims commission it provides that the chairperson shall have the power of superintendence in the general administration of the commission and exercise such powers as may be specified by rules to be made by the central governmentclause 30—this clause contains provisions for appointment of officers and other employees of the nuclear damage claims commission it provides that the central government shall provide the commission with such officers and other employees as it may deem fit it further provides that the salaries and allowances payable to and the terms and other conditions of service of officers and other employees of the commission shall be specified by rules to be made by the central governmentclause 31—this clause contains procedure for making application for claiming compensation before the nuclear damage claims commission it provides that an application to the commission in respect of a nuclear damage shall be made in the form  and manner provided by rules to be made by the central government and such application shall, subject to the provisions of clause 18, be made within a period of three years from the date of knowledge of nuclear damage by the person suffering such damageclause 32—this clause contains provisions for procedure and powers of nuclear damage claims commission it provides that the commission shall have original  jurisdiction while adjudicating upon application for compensation filed before it under sub-clause (1) of clause 31 or transferred to it under clause  33 of the bill, and upon such  transfer, the commission shall hear the applications from the stage at which it was before such transfer further, it empowers the chairperson to constitute benches comprising of  not more than three members of the commission for the purpose of hearing of claims and that any decision thereon shall be rendered by a majority of the memebrs hearing such claims the commission shall not be bound by the procedure laid down in the code of civil procedure, 1908 but shall be guided by the principles of natural justice and shall have the power to regulate its own procedure the commission shall have certain powers which are vested in a civil court under the code of  civil procedure, 1908, for discharging functions under the proposed legislation it provides that the commission shall dispose of  the application within a period of three months from the date of its receipt and make an award accordingly however, while making an award under this section, the commission shall not take into consideration any benefit, reimbursement or amount received by the  applicant in pursuance of any contract of insurance or otherwise it empowers the  commission to grant temporary injunction to restrain the operator where he is likely to  remove or dispose of his property with the object of evading payment  by him of the amount of the award it also provides that every award so made shall be finalclause 33—this clause contains provisions for transfer of pending cases to the nuclear damage claims commission it provides that every application for compensation pending before the claims commissioner immediately before the date of establishment  of the commission under clause 19 shall, after the establishment of the commission, stand transferred on that date to the commissionclause 34—this clause provides for the nature of proceedings before the claims commissioner or the nuclear damage claims commission it provides  that every proceedings before the claims commissioner or the commission under the proposed  legislation shall be deemed to be judicial proceedings within the meaning of sections 193, 219 and 228 of, and for the purposes of section 196 of  the indian penal codeclause 35—this clause contains provisions for exclusion of jurisdiction of civil courts it provides that no civil court shall have jurisdiction to entertain any suit or procedings in respect of which the claims commissioner or the nuclear damage claims commission is empowered to adjudicate under the proposed legislation and no  injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under the proposed legislationclause 36— this clause contains provisions for enforcement of awards it provides that when an award is made by the claims commissioner under sub-clause (1) of clause 16or by the nuclear damage claims commission under sub-clause (6) of clause 32 of the bill, the insurer or the person responsible under the contract of insurance or financial security to pay the amount of such award to the extent of his liability, shall be required to deposit such amount within such time and in such manner as directed by the claims commissioner or the commission and the remaining amount by which such award exceeds the amount so deposited shall be deposited by the operator, subject to the maximum extent of his liability under sub-section (2) of section 6 of the bill it further provides that on the failure of any person to deposit the amount of award within the period specified in the award, such amount shall be recoverable from such person as arrears of land revenue and the amount so deposited shall be disbursed to the awardees within a period of fifteen days from the date of such depositclause 37—this clause contains provisions for preparation of annual report it provides that the nuclear damage claims commission shall prepare in each financial year an annual report giving full account of its activities during that financial year in the manner provided by rules to be made by the central government and submit a copy to the central government to enable it to lay the same before each house of parliamentclause 38—this clause contains provisions for dissolution of nuclear damage claims commission in certain circumstances it provides that where the central government is satisfied that the purpose for which the commission established under clause 19 has served its purpose, or where the number of cases pending before such commission is so less that it would not justify the cost of its continued function, or where it considers necessary or expedient so to do, it may, by notification, dissolve the commission it also provides for consequences of such dissolution and provides that with effect from the date of notification of dissolution of commission, (a) the proceeding, if any, pending before the commission as on the date of such notification shall be transferred to the claims commissioner to be appointed by the central government under sub-clause (2) of clause 9; (b) the chairperson and all members of the commission shall be deemed to have vacated their offices as such and they shall not be entitled to any compensation for premature termination of their office; (c) officers and other employees of the commission shall be transferred to such other authority or offices of the central government in the manner provided by rules to be made by the central government however, officers and other employees so transferred shall be entitled to the same terms and conditions of  service as would have been held by them in the commission and in the case of an officer or employee of the commission refusing to join the services in such other authority or office, he shall be deemed to have resigned and shall not be entitled to any compensation for premature termination of contract of service it also provides that upon the dissolution of  the  commission, all assets and liabilities of the commission shall vest in the central government and that anything done or any action taken or purported to have been done or taken including any order made or notice issued or any appointment, confirmation or declaration made or any document or instrument executed or any direction given by the commission before such dissolution, shall be deemed to have been validly done or taken the central government shall have power to re-establish the nuclear damage claims commission subsequent to its dissolution in accordance with the provisions of the proposed legislationclause 39—this clause contains provisions for offences and penalties it provides punishment for contravention of any rule to be made or any direction to be issued under the proposed legislation or for failure to take out and renew insurance policy or other financial security under clause 8 or for failure to deposit the award amount under clause 36 of the bill, with imprisonment for a term which may extend to five years or with fine or with both it also provides punishment for failure to comply with any direction to be issued under clause 43 of the bill or for causing obstruction to any authority or person in the exercise of his powers under the proposed legislation, with imprisonment for a term which may extend to one year or with fine or with bothclause 40—this clause contains provisions for offences by companies it provides that where an offence under the proposed legislation has been committed by a company, every person directly in charge of, and responsible to, the company for the conduct of its business at the time of commission of offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence it also provides that where any offence under the proposed legislation has been committed with the consent or connivance of, or attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accodingly the explanation to the clause seeks to define the terms "company" and "director"clause 41—this clause contains provisions for offences by government departmentsit provides that where an offence under the proposed legislation has been committed by any department of the government, the head of the department shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accodingly, in accordance with the provisions of the said clauseclause 42—this clause contains provisions for cognizance of offences and provides that no court inferior to that of a metropolitan magistrate or a judicial magistrate of the first class shall try any offence under the proposed legislation and that cognizance of such offence shall be taken only on a complaint made by the central government or any authority or officer authorised by itclause 43—this clause confers powers upon the central government to give directions to any operator, person, officer, authority or body for carrying out the purposes of the proposed legislation and such person shall be bound to comply with such directionclause 44—this clause confers power upon the central government to call for such information from an operator as it may deem necessary for the purposes of the proposed legislationclause 45—this clause confers power upon the central government to exempt, by notification, any nuclear installation from the application of the proposed legislation where it is of the opinion, having regard to small quantity of nuclear material, that the risk involved from such installation is insignificantclause 46—this clause provides that the provisions of the proposed legislation shall be in addition to, and not in derogation of, any other law for the time being in force and it shall not exempt the operator  from proceeding against him  under the provisions of any other law for the time being in forceclause 47—this clause contains provisions for protection of action taken in good faith under the proposed legislation it provides that no suit, prosecution or other legal proceedings shall lie against the central government or person or officer or authority in respect of anything done in good faith in pursuance of such proposed legislation or of any rule or order made, or direction issued, thereunderclause 48—this clause empowers the central government to make rules in respect of the matters specified in the said clause the rules made by the central government shall be laid before each house of parliamentclause 49—this clause contains provision for power to remove difficulties it provides that if any difficulty arises in giving effect to the provisions  of this act, the central government may, by order published in the official gazette, make such provisions, not inconsistent with the provisions of this act, as appear to it to be necessary or expedient for removing the difficulty however,  no such order can be made under this section after the expiry of three years from the commencement of  the proposed legislation further, every order made under this section shall, as soon as may be after it is made, be laid before each house of parliament financial memorandumperson who suffers nuclear damage shall be entitled to receive compensation under this act for any nuclear damage resulting from nuclear incident for this purpose, clause 6 of the bill proposes to fix the maximum amount of liability for a nuclear incident at rupee equivalent of three hundred million special drawing rights and the liability of the operator at rupees five hundred crores per nuclear incident at present and empowers the central government to increase or decrease the amount of liability of the operator depending on the extent of risk involved2 clause 7 of the bill proposes to fix liability of the central government for nuclear damage resulting from a nuclear incident in the following cases—(a) where the liability exceeds the amount of liability of an operator,  to the extent such liability exceeds such liability of the operator;(b) where the nuclear incident occurs in a nuclear installation owned by it; and (c) where the nuclear incident occurs on account of grave natural disaster of an exceptional character or on account of act of armed conflict, hostility, civil war, insurrection or terrorism however, since the possibilities of such eventualities are very rare and the actual liability of the government in the event of a nuclear incident would very well depend on the magnitude of the incident, it would be very difficult to estimate the cost of liability at this stage3 sub-clause (2) of clause 9 of the bill empowers the central government to appoint claims commissioner for the purpose of adjudicating upon the claims for compensation in respect of nuclear damage and clause 11 thereof provides for the salary and allowances payable to and other terms and conditions of service of claims commissioner4 clause 19 of the bill empowers the central government to establish a nuclear damage claims commission under the circumstances specified thereunder and clause 22 thereof,  provides for salary and allowances payable to and the other terms and conditions of service including pension, gratuity and other retirement benefits of the chairperson and other members of the commission5 sub-clause (1) of clause 30 of the bill empowers the central government to provide the nuclear damage claims commissioner with officers and other employees and sub-clause (2) thereof provides for the salary and allowances payable to and other conditions of service of such officers and employees6 it would be difficult to work out the exact expenditure, both recurring and nonrecurring towards the establishment of claims commissioner and nuclear damage claims commission, as it can be determined only after their appointment in case of any nuclear incident memorandum regarding delegated legislationclause 48 of the bill empowers the central government to make rules for carrying out purpose of the act such power to make rules, inter alia, includes (a) the other financial security which an operator of a nuclear installation may take for covering his liability under the bill and the manner thereof; (b) the salary and allowances payable to and the other terms and conditions of service of claims commissioner; (c) the procedure to be followed by claims commissioner; (d) the person to be associated by claims commissioner and the manner thereof; (e) the remunerations, fee or allowances of associated person; (f) any other matter with respect to which the claims commissioner shall have the power of a civil court; (g) the form of application, the particulars it shall contain and the documents it shall accompany; (h)the salary and allowances payable to and other terms and conditions of service of chairperson and other members; (i) the powers of chairperson; (j) the salary and allowances payable to and the terms and other conditions or service of officers and other employees of the commission; (k) the form of application, the particulars it shall contain and the documents it shall accompany; (l) any other matter with respect of which the commission shall have the power of a civil court; (m) the form and the time for preparing annual report by the commission; and (n) the manner of transfer of officers and other employees of the commission2 the matters in respect of which the said rules may be made or notification issued are matters of procedure and administrative detail, and as such, it is not practicable to provide for them in the proposed bill3 the delegation of legislative power is, therefore, of a normal character———— a billto provide for civil liability for nuclear damage, appointment of claims commissioner, establishment of nuclear damage claims commission and for matters connected therewith  or incidental thereto—————(shri prithviraj chavan, minister of state for science and technology and earth sciences)