Case Note & Summary
The dispute arose from the Bhopal Gas Disaster, where the Union of India filed a suit against Union Carbide Corporation (UCC) in the Southern District Court at New York. The court directed UCC to deposit 5 Million U.S. Dollars for the victims' relief through the Indian Red Cross Society. This payment was intended to be without prejudice to UCC's contentions and was to be credited against any final judgment. After UCC's plea of forum non-conveniens was upheld, the Union of India instituted a suit in Bhopal, which was settled by the Supreme Court in February 1989. The Indian Red Cross Society later sought modification of the court's order, arguing that the interim relief fund should not be treated as part of the settlement fund. The court analyzed the nature of the interim relief and concluded that it was an advance payment, thus dismissing the applications of the Indian Red Cross Society. The court held that the unutilised part of the interim relief would be administered as part of the Bhopal gas relief fund.
Headnote
A) Civil Procedure - Interim Relief - Nature of Interim Relief - Bhopal Gas Disaster - The interim relief of 5 Million U.S. Dollars was treated as an advance payment or credit to the defence and not as a separate fund outside the final adjudication - The court upheld the terms of the settlement and directed that the unutilised part of the interim relief would become part of the Bhopal gas relief fund (Paras 1-9).
Issue of Consideration
Whether the interim relief of 5 Million U.S. Dollars stands independently and outside the final adjudication.
Final Decision
The Supreme Court dismissed the applications of the Indian Red Cross Society, holding that the interim relief of 5 Million U.S. Dollars was an advance payment and part of the settlement fund, thus requiring no modification of the previous orders.
Law Points
- Interim relief
- Bhopal Gas Disaster
- settlement fund
- jurisdiction
- advance payment
