- (1.) This order is made in furtherance of the one dated 10/12/1993, of this court in relation to the implementation of the directions contained in the orderdated 3/10/1991 in Review Petition No. 229 of 1989 (Union Carbide Corpn. v. Union of India) for the setting up of a hospital for the victims of the Bhopal gas leak disaster. The said order dated 10/12/1993, be read as part of and prefatory to this order.
(2.) We have heard Shri V. R. Reddy, learned Additional Solicitor General for the Union of India. We have had the benefit of the submissions of Sir Ian percival, the Sole-Trustee of the "bhopal Gas Hospital Trust" set up by the union Carbide Corporation (UCC for short) said to be pursuant to and in implementation of the directions in this behalf contained in the said review order of 3-10-1991. We asked Mrs A. K. Verma, learned counsel for UCC whether she has any submissions to make. Mrs Verma stated that she has had no instructions for any specific submissions.
(3.) It would appear that after we made the order dated 10/12/1993, there were confabulations between the government of India on the one hand and Sir lan Percival, the Sole-Trustee, on the other. The views of the government of india in relation to the matter are contained in the affidavit filed by Shri R. Gopalan, Director, Department of Chemicals and Petro-Chemicals, government of India. The affidavit of Shri R. Gopalan, inter alia, states : "Accordingly discussions were held by a Committee of Officers of union of India with Sir Percival on the 27th and 31/01/1994. In this regard it is relevant to state that according to the Hospital services Consultancy Corporation Limited, who have now updated the cost of constructing an appropriate hospital, a down payment of Rs. 110 crores will be necessary to construct a hospital with 500 beds. A down payment of rs 60 crores would suffice to construct a hospital with only 200 beds. After discussing the modalities with Sir lan Percival, government is willing to accept the following arrangement for the construction of the hospital, if the Supreme court orders lifting of the attachment of shares by the CJM at Bhopal : (A) The amount of money for the hospital (Rs 50 crores as initially offered by the UCC to be enhanced to Rs. 60 crores as offered by the trustee, Sir Percival) should be made available to the organisation that would be constituted by the government for supervising the construction and operation of the hospital. The arrangement suggested by the Trustee that the said money be kept in a hospital trust to be administered solely by him and amount to be released by him in instalments to the construction agency is not acceptable. The government, however, has no objection to Sir Percival being associated as a member of a supervisory body which the government would set up to supervise the construction and operation of the hospital. (B) The size of the hospital would be determined by the amount of rs 50-60 crores or such higher amount as the Supreme court may persuade M/s Union Carbide Corporation or the Trustee to make available for the hospital. (C) The amount for the administrative expenses of the Trust may be left to be decided by the Supreme court. (D) The remaining amount after payment of the capital gains tax should be kept under attachment in an escrow account to be kept under the control of CJM Bhopal pending finalisation of the proceedings relating to attachment. (E) The entire lot of shares should be handed over to the State Bank of India who will get the sale carried out with the objective of realising best price and for this purpose, they may consult merchant bankers, including those of the Union Carbide Corporation. (F) It is presumed that the sale of shares would fetch an amount sufficient to meet the purpose of construction and operation of the hospital. In case the sale proceeds of shares is not sufficient, capital gains tax and cost of sale have to be first paid out of the sale proceeds. A sum, as ordered by the Supreme court, would be placed in an escrow account, which will remain under attachment till the attachment proceedings are disposed of. If the remaining amount falls short of rs 60 crores, the balance would have to be provided by the UCC/ucil. In that event funds required for the administration of the Trust would have to be made available by the UCC/ucil separately. "there is, thus, a broad consensus on the question between the government of india and the Sole-Trustee of the "bhopal Gas Hospital Trust".;