INDIAN RED CROSS Vs. UNION OF INDIA

JUDGEMENT

(1.) We have heard learned counsel on both sides.

(2.) In terms of the orders dated February 14/15, 1989, approving a settlement the Indian Red Cross Society was required and obliged to account for the amounts received by it out of the 5 million US dollars made available by the Union Carbide Corporation through the American red Cross. The Registrar of the Supreme court was authorised to collect from the Indian Red Cross Society the balance remaining unspent as on 15/02/1989. The orders approving the settlement treated the said 5 million dollars as part of the Settlement Fund of 470 million US dollars.

(3.) According to the Indian Red Cross Society it had received only 4 million dollars out of the 5 million and the unspent balance as on February15, 1989 was Rs 3,43,81,045.45. But the Society appears to have permitted itself the liberty of continuing to incur expenditure out of this fund even after 15/02/1989. The Society says that the expenditure - of about Rs. 5 lakhs every month was incurred by it on humanitarian and relief work for the benefit of the victims of the Bhopal Gas Disaster even after 15/02/1989 in order to maintain continuity of the medical and other relief measures which the Society had initiated at the instance and request of the American Red Cross. It would appear that the Society had filed applications before this court for approval of the continuance of the relief measures. But no steps for expeditious consideration of the prayer were taken by the Society nor any such approval granted. Indeed, by order dated October 3, 199v, the claim of the society to be exclusively entitled to deal with the 5 million dollars was rejected. In the circumstances the retention and appropriation of the amounts after 15/02/1989 was without the court's approval. The funds in the hands of the Society as on 15/02/1989 were part of the Settlement Fund and any appropriation of any part of it for any purpose required approval and sanction by the court as the matter was sub-judice.