BHOPAL: The Assets of US multinational Union Carbide Corporation (UCC) were attached on Thursday by Tilab Sharma, Chief Judicial Magistrate (CJM) Bhopal.

The aim of the order is to control UCC to present itself in court and Prevent it from bypassing criminal proceedings in connection with the Bhopal gas leak disaster on December 3, 1984.

Sharma’s order came while following a petition filed by the Central Bureau of Investigation (CBI). The criminal suit filed by the CBI in the court of the CJM Bhopal was revived after an order issued by the Supreme Court on October 3 last year.

So far, however, UCC and Anderson have gone unrepresented in the suit which was earlier quashed by the Supreme Court while approving a $470 million settlement between the Government of India and UCC on February 14-15, 1989.

Later, however, the Supreme Court, through another door, had upheld the constitutional validity of the $470 million settlement while revoking the immunity that was granted to UCC earlier.

In his 11-page landmark Judgement on Thursday, Gulab Sharma concluded that “it appears that in order to avoid criminal proceedings UCC wants to somehow transfer its 50.90% share-holding in UCIL. Under these circumstances there is no alternative other than to attach UCCs assets in India and compel UCC to appear in the court.”

The CJM who had on Wednesday heard the arguments of U.S. Prasad, Special Public Prosecutor and CBI counsel, and Rajendra Singh, lawyer for Union Carbide India Limited (UCIL) (the Indian subsidiary of UCC) told the CB to furnish details about UCCs assets in India.

The court said that a message should be immediately sent to UDs headquarters asking it not to transfer its 50.90% shareholding in UCIL or any other assets in India. The Reserve Bank of India (RBI) should also be informed about it, the CJM noted.

UCIL was directed by Gulab Sharma not to record any change in UCCs share in its registers,

The CBI had demanded the immediate attachment of UCCs shares in UCCIL and other assets in India in the wake of reports (dated April 15) quoting UCC Chairman Robert Kennedy as saying that UCC was planning to sell its shares in UCIL.

Contesting the CBIs petition, Rajendran Singh had said that UCC had merely pledged its 50.90% share-holding in UCIL to the Bhopal Hospital Trust.

The high-powered trust, headed by Sir Ian Percival-former Solicitor General and now a member of the Privy Council, UK was founded on March 20, 1992 and approved by the RBI on March 30,

Singh held that though UCCs 1,65,85,00 equity shares in UCIL. Were located in the US, they could not be sold without prior permission from the RBI.

These shares were located abroad following the issue of license by the RBI on February 25,1965, he added.

Singh told the court that if UCCs shareholding was attached by the CJM, the setting up of a hospital in Bhopal for the victims of the gas tragedy would be delayed.

Prasad, counsel for the CBI, countered by saying that “this court is not concerned with the hospital. It is concerned with UCC.”

Welcoming the Judgement U.S. Prasad told that “it is in the larger interests of justice.

Article extracted from this publication >> May 15, 1992