A hazardous or inherently dangerous activity can be tolerated only on the condition that it indemnifies all those who suffer because of the dangerous activity. The above statement pertains to

This statement describes strict liability under Rule in Rylands v. Fletcher (1868) - a person who keeps something likely to do mischief if it escapes must compensate for all damage caused. Unlike absolute liability (M.C. Mehta case), strict liability has exceptions (act of God, plaintiff's fault, act of third party). The key is that dangerous activities require indemnification.