LexUNION CARBIDE CORPORATION ETC. ETC versus UNION OF INDIA ETC. ETC.
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UNION CARBIDE CORPORATION ETC. ETC. A v. UNION OF INDIA ETC. ETC. OCTOBER 3, 1991 [RANGANATH MISRA, CJ., K.N. SINGH, M,N. B VENKATACHALIAH, A.M. AHMADI AND N.D. OJHA, JJ. J Bhopal Gas Disaster-Court assisted settlement arrived at between Union Carbide Cotporation and Union of India-S Million U.S. Dollars deposited by Union Carbide Co,.Poration prior to settlement and lying un- C utilised with Indian Red Cross Society-Whether the said award of 5 Million Dollars made as an interim measure would stand independently and outside the final adjudication. In the suit filed by the Union of India against Union Carbide Corpora· tion (UCC) tiled before the Southem District Court at New York, the presid· Ing Judge directed the utilisation of 5 Million Dollars deposited by UCC D towards lnteri1,11 Relief Fund, for affording relief to the victims of the Bhopal Gas leak disaster through the Indian Red Cross Society. The said payment was Intended to be without prejudice to the contentions of UCC. Also it was to be credited against the payment of any final judgment or settlement of the claims against UCC arising out of the Bhopal Gas leak disaster. 'The Indian E Red Cross Society sought to stipulate with the American Red Cross tliat the Indian Red Cross Society should be free from any contingent obligations stemming from the ftnal result of the litigation one way or the other. How· ever, the terms of the order were not changed. · After the proceedings in the U.S. District Court terminated upon UCC•s plea of forum non-conveniens being upheld, Union of India in· F stituted a suit in the ~istrict Court at Bhopal. The claim in the suit came to be settled in this Court by its orders dated 14/15th February, 1989. In terms of the settlement order, the said sum of 5 Million US Dollars was treated as part of the settlement Fund and a direction was given to the · Registrar to have the amount transferred to his credit which was lying unutilised with the Indian Red Cross Society. . , : . .. G The Indian Red Cross Society has filed the present applications. It contended that the order dated 15th February, 1989 insofar as it treated the unutmsed part of the interim relief fund and authorising the Registrar to realise it as such, was not consistent with the terms under which the relief fund was agreed to be entrusted to and accepted by it and 381 H 382 SUPREME COURT REPORTS [1991] SUPP. 1 S. C.R. A so the directions given in regard to the said relief fund required to be deleted. B c D E F G H On the question whether the interim relief of 5 Million U.S. Dollars was a distant award standing independently and outside the. final ad· judication,. dismissing the applications, this Court, HELD: 1. The agreement between the American Red Cross and the Indian Red Cross Society came to be discussed be~ore the District Court, New York, during the hearing on 20th November 1985. The portions of the transcript of what transpired at the hearing indicate that far from approving the purported arrangement inter-se between the American Red Cross and the Indian Red Cross Society, they show that the terms of the order dated June 7, 1985, as to the nature and character of the interim relief as an "advance payment" or "credit to the defence" were left undis- turbed. The transcript of the hearing also reaffirms that "if there is any recovery against Union Carbide, it is a set-off". Also there is nothing on record to show that the terms as to the nature and character of the Inter· Im payment had been altered in terms of the inter-se arrangements pleaded by the Indian Red Cross Society. In the circumstances, the agree- ment between the American Red Cross and the Indian Red Cross Society cannot prevail over the effect of the order dated 7th June, 198! of Judge Keenan. This Court's directions In this behalf In the order dated 15th February, 1989, are not inconsistent therewith and do not, therefore, re· quire any modlncation. (386 B·F] 2. Now that the terms of the settlement have been upheld In the review proceedings the unutllised part of. the Interim relief of 5 Mllllon U.S. Dollars will become part of the Bhopal gas relief fund and shall have to be administered as such. The Registrar of the Sup1-eme Court shall be entitled to call-up the funds with the Indian Red Cross Society which stood unutlllsed as on 15th February, 1989. (386 F·G] . CIVIL APPELLATE JURISDICTION : Interim Application Nos.1,
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