Union Carbide Corporation Limited v. Union of India
1995-12-01
A.M.AHMADI, S.C.SEN, S.P.BHARUCHA
body1995
DigiLaw.ai
JUDGMENT : I.A. Nos. 30-31 of 1995 1. We have heard the learned counsel for the Trustee at some length and have perused the earlier orders made by this Court from time to time. The initial order was for setting up a Hospital with at least 500 beds on humanitarian consideration and UCC and UCIL were expected to bear the financial burden for the establishment and equipment of such a Hospital and its operational expenses for a period of eight years vide order dated 3rd October, 1991 in Union Carbide Corporation etc. etc. v. Union of India etc. etc in the review application reported in (1991) Suppl. (1) SCR 251. Subsequent thereto certain orders were passed by this Court, but we do not think it necessary at this stage to refer to them but it would suffice if we refer to the order of 14th February. 1994 wherein a brief reference is made to the earlier orders of this Court. Before we refer to the order of 14th February, 1994, we may state that pursuant to the order. made in the review application the Union Carbide Corporation and the Union Carbide Chemicals and Plastics Company incorporated constituted a Trust with Sir Ian Percival as the Sole Trustee. A copy of the Trust Deed may be placed on record. By the order of 14.2.1994 made in furtherance of the order dated December 10, 1993 for the implementation of the directions in the Review Petition No.229 of 1989 referred to earlier, this Court took notice of the financial requirements for the setting up of the Hospital as envisaged by the order of 3rd October, 1991. By the order of 14.2.1994, the Court took notice of the fact that Rs.50 crores which sum was initially offered by the UCC should be enhanced to Rs.60 crores. Here we may mention one development which tool place after the order of 3rd October, 1991 and that is an order passed by the Chief Judicial Magistrate, Bhopal in Criminal Cases No.RT 2792 of 1987 dated 30th April, 1992 by which the shares of UCIL numbering 1.65.84.750 held by UCC and endowed upon the Trust referred to earlier came to be attached for the failure on the part of some of the accused appearing before the Court in response to the process issued by it.
The order of 30th April, 1992 was modified by this Court by withdrawing the proceedings to this Court the details whereof need not be referred to at this stage. It would be sufficient to state that as per the present application vide paragraph 4(c) the total amount available to the Trust in its fund is Rs.125 crores. The shares which were attached under the order of the Chief Judicial Magistrate referred to earlier were sold and at present a sum of Rs. 183 crores is lying with that Court as frozen assets out of the sale price. The Government of Madhya Pradesh has already provided land ad measuring about 50 acres for the construction of the Hospital to be funded by the Trust at Bhopal. By these applications, the Trustee desires that the balance amount of Rs.183 crores or such part thereof as this Court may deem appropriate should be diverted to the Trust fund with a view to enabling the Trust to set up the Hospital envisaged by the order of 3rd October, 1991. The grievance of the Bhopal Gas Peedith Sangarsh Sahayog Samiti and the Bhopal Group for Information and Action, which has preferred a separate I.A. is that by this method the entire amount of the sales proceeds of the attached properties, namely, the shares would be siphoned out to the Trust with the result that the attachment would be rendered redundant since there would be nothing left as an asset under the order of attachment and this would result in the attachment order loosing efficacy and force. Mr. Desai submitted that while the prayer in the application was release of Rs. 183 crores or such part thereof as the Court in its discretion deems appropriate, he would not insist on the release of the entire amount if the Court feels that some amount should be retained under the attachment order. That is a matter that the Court may have to consider at a later stage, but what the Court would like to ascertain is the response of the Union Carbide Corporation in regard to its humanitarian effort at setting up of a 500 bed strong Hospital at Bhopal. The effort of the Trustee by this application is to ensure the setting up of the Hospital envisaged by the order of 3rd October, 1991.
The effort of the Trustee by this application is to ensure the setting up of the Hospital envisaged by the order of 3rd October, 1991. However, under that order the UCC and UCIL were expected to fund the Hospital on humanitarian considerations because of the tragedy that occurred on account of the escape of gas from its premises. The order, therefore, contemplated that this should be the endeavour of the UCC and the UCIL on humanitarian grounds rather than on purely legal grounds. We would, therefore, like to ascertain from the UCC its response in this behalf keeping in view the humanitarian consideration on the basis of which the plan for setting up of the Hospital was envisaged under the order of 3rd October 1991, pursuant whereto the UCC and its sister concern set up the Trust with Sir Ian Percival as the Sole Trustee. 2. A notice to the standing counsel for UCC appearing in these proceedings earlier in point of time, namely M/s. J.B. Dadachanji & Company, may go to enable them to ascertain the response of the UCC and place it before this Court. 3. Before we pass further orders on these applications we would like the Trustee to place on record the plans and estimates with the certification of the Architects/Engineers and the projection as to the time factor in regard to the construction of the Hospital to enable this Court to have a clear perspective of the time likely to be taken and the expense involved in the construction of the Hospital. This should be on the premise as to what would be the cost of construction for a 260-bed Hospital and the time that would be taken for the construction thereof along with the supporting infrastructure for such a Hospital. Similarly, the estimates in regard to expense and time for a 500-bed Hospital with supporting infrastructure may be separately placed. before this Court. The further orders would be passed by this Court thereafter. Mrs. A.K Verma appearing for Mis. J.B. Dadachanji & Company is present and takes notice. 4. By consent, let the matter come up on 6.2.1996. IN I.A. Nos. 36 & 37 5. To come up along with the above I.As.