Union Carbide Corporation, U.S.A. vs Union of India and Others

Having heard learned Counsel for the parties, and having taken into account the written memorandum filed by them, we make the following order further to our order dated 14 February, 1989 which shall be read with and subject to this order:

1. Union Carbide India Ltd. which is already a party in numerous suits filed in the District Court at Bhopal, and which have been stayed by an order dated 31 December, 1985 of the District Court, Bhopal, is joined as a necessary party in order to effectuate the terms and conditions of our order dated 14 February, 1989 as supplemented by this order.

Pursuant to the order passed on 14 February 1989 the payment of the sum of U.S. Dollars 470 millions (four hundered and seventy millions) directed by the Court to be paid on or before 31 March, 1989 will be made in the manner following:

(a) A sum of U.S. Dollars 425 Millions (four hundred and twenty five millions) shall be paid on or before 23 March, 1989 by Union Carbide Corporation to the Union of India, less U. S. Dollars 5 Millions already paid by the Union Carbide Corporation pursuant to the order dated 7 June, 1985 of judge Keenan in the Court proceedings taken in the United States of America.

(b) Union Carbide India Ltd. will pay on or before 23 March, 1989 to the Union of India the rupee equivalent of U. S. Dollars 45 millions (forty five Millions at the exchange rate prevailing at the date of payment.

(c) The aforesaid payments shall be made to the Union of India as claimant and for the benefit of all victims of the Bhopal Gas Disaster under the Bhopal Gas Leak Disaster (Registration and Processing of Claims Scheme, 1985, and not as fines, penalties, or punitive damages.

Union full payment of the sum referred to in paragraph 2 above.

(a) The Union of India and the State of Madhya Pradesh shall take all steps which may in future become necessary in order to implement and give effect to this order including but not limited to ensuring that any suits, claims or civil or criminal complaints which may be filed in future against any Corporation, company or person referred to in this settlement are defended by them and disposed of in terms of this order.

(b) Any such suits, claims or civil or criminal proceedings filed or to be filed before any Court or authority are hereby enjoined and shall not be proceeded with before such Court or authority except for dismissal or quashing in terms of this order.

Upon full payment in accordance with the Court''s directions:

(a) The undertaking given by Union Carbide Corporation pursuant to the order dated 30 November, 1986 in the District Court, Bhopal shall stand discharged, and all orders passed in Suit No. 1113 of 1986 and/or in revision theref on shall also stand discharged.

(b) Any action for contempt initiated against counsel or parties relating to this case and arising out of proceedings in the Courts below shall be treated as dropped.

The amounts payable to the Union of India under these orders of the Court shall be deposited to the credit of the Registrar of this Court in a Bank under directions to be taken from this Court.

This order will be sufficient authority for the Registrar of the Supreme Court to have the amount transferred to his credit which is lying unutilized with the Indian Red Cross Society pursuant to the direction from the International Red Cross Society.

The terms of settlement filed by learned Counsel for the parties today are taken on record and shall form part of our order and the record.

The case will be posted for reporting compliance on the first Tuesday of April, 1989.