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2006 DIGILAW 547 (SC)

Union Carbide Corporation Limited v. Union of India

2006-05-02

B.N.SRIKRISHNA, R.V.RAVEENDRAN

body2006
ORDER : B.N. Srikrishna and R.V. Raveendran, JJ. IAs Nos. 50-51 of 2005 in CAs Nos. 3187-88 of 1988. 1. As directed by us on 12-4-20061, Bhopal Memorial Hospital Trust has filed its audited accounts for the Accounting Years 1998-1999 to 2003-2004. The chartered accountant appointed by the Bhopal Gas Peedith Mahila Udyog Sangathan and Bhopal Gas Peedith Sangharsh Sahayog Samiti has inspected the accounts and filed a report dated 1-5-2006. We have perused the said report which appears to be general in character. Prima facie, there is nothing suggesting that there is anything seriously amiss with the accounts of Bhopal Memorial Hospital Trust. 2. We have also heard the learned counsel on both sides. Particularly having regard to the order made by this Court on 3-4-1996 in Union Carbide Corpn. Ltd. v. Union of India, (2012) 8 SCC 348 , we are satisfied that the balance amount of Rs 37.65 crores with accrued interest thereupon, which lies attached in the frozen account with State Bank of India (Main Branch), Parliament Street, New Delhi should be paid over to Bhopal Memorial Hospital Trust. This is for the reason that with lowering of interest rates, the returns available on its existing investments may not be sufficient to carry out the onerous work of treating the gas victims and other needy persons who utilise the services of the hospital. 3. In the result, we allow these two IAs and direct that the aforesaid amount be handed over to Bhopal Memorial Hospital Trust. lAs Nos. 50-51 of 2005 in CAs Nos. 3187-88 of 1988, are, accordingly, allowed and disposed of. 4. Our attention has been drawn to the fact that all public trusts in the State of Madhya Pradesh are governed by the Madhya Pradesh Public Trusts Act, 1951 and under Section 3 thereof, the Collector is the Registrar of such public trusts. Section 19 of this Act enables any person having interest in such trust to obtain inspection of the budget, balance sheet and the income and expenditure accounts and audited report filed by the public trust with the said authority. Any interested person can, accordingly, make an application under Section 19 and seek instructions and bring to the notice of the Registrar whatever deficiencies he comes across. Under Section 16(2) of the said Act, the accounts are to be audited annually by a person who is qualified. Any interested person can, accordingly, make an application under Section 19 and seek instructions and bring to the notice of the Registrar whatever deficiencies he comes across. Under Section 16(2) of the said Act, the accounts are to be audited annually by a person who is qualified. Section 16 of this Act indicates the manner in which the accounts are to be kept and the accounts are to be audited by every public trust. We are sure that the Collector as the enforcing authority will make sure that this is carried out during every accounting year. 5. Bhopal Memorial Hospital Trust was established for the work of medical treatment of the gas accident victims ever since it was appointed by an order of this Court in the year 1998, although it actually started functioning from the year 2000. It is pointed out by the learned Senior Counsel for the Trust that this Trust was originally expected to complete its mission of treating the gas victims within a period of eight years. Experience has shown that the work cut out for the Trust has not yet been completed and is likely to continue for a longer period. Mr Jain, the learned Senior Counsel for the Trust, points out that in view of the uncertainty of the tenure of the Trust, the Trust is unable to get doctors of high reputation and high professional qualification. We are of the view that the Trust should continue to carry on its work till this Court is satisfied that the continuation of the work of the Trust is unnecessary. 6. Consequently, we direct that Bhopal Memorial Hospital Trust shall continue to carry on its work of medical treatment and rehabilitation of the gas accident victims and other needy people utilising the services of the hospital until this Court makes an order dissolving the Trust. IAs Nos. 48-49 in CAs Nos. 3187-88 of /988 7. On the request of the learned counsel for the applicants, adjourned. IAs Nos. 56-57 8. On the request of Mr S. Muralidhar, adjourned for filing the reply. WP (C) No. 50 of 1998 9. The Monitoring Committee was appointed by this Court by its orders dated 17-8-2004; and 17-9-20044. Mr. IAs Nos. 48-49 in CAs Nos. 3187-88 of /988 7. On the request of the learned counsel for the applicants, adjourned. IAs Nos. 56-57 8. On the request of Mr S. Muralidhar, adjourned for filing the reply. WP (C) No. 50 of 1998 9. The Monitoring Committee was appointed by this Court by its orders dated 17-8-2004; and 17-9-20044. Mr. Omprakash Mehra, the Chairman of Bhopal Gas the Monitoring Committee, has filed an affidavit dated 21-4-2006 indicating the various issues on which recommendations have been made by the Monitoring Committee for the time-bound actions required to be taken by the State Government. 10. After hearing Mr V.R. Reddy, the learned Senior Counsel appearing for the State of M.P., we are satisfied that the recommendations need to be implemented. Mr. Reddy states that the implementation will start immediately. However, he submits that, in case there is some unforeseen difficulty because of which some time-bound action cannot be adhered to, the State Government may be given liberty to move this Court. Such liberty is granted. 11. To be listed for further directions in July 2006.