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Smart Summary

Factual and Procedural Background

Writ Petition No. 8291 of 2006 was filed under Article 226 of the Constitution of India by the Ponds Hindustan Lever Limited Ex. Mercury Employees' Welfare Association against Hindustan Lever Limited (now Hindustan Unilever Limited), State Government authorities, and the Union of India. The petition sought a Writ of Mandamus directing respondents to establish a scheme for economic rehabilitation and health care for ex-workers of the Clinical Thermometer Factory at Kodaikanal, who suffered mercury exposure, and to prosecute the first respondent for violations of the Factories Act, 1948 and environmental laws. Additionally, it sought revision of occupational health and safety standards and compensation amounts.

Writ Petition Nos. 23748 & 23749 of 2011 sought a Writ of Certiorari to quash a committee appointment order related to the matter.

With the assistance of learned counsel, a settlement was reached and recorded by the Court through Writ Miscellaneous Petition No. 7761 of 2016. The parties agreed on the terms and appointment of an Advocate Commissioner to oversee compliance with the settlement obligations by 28 March 2016.

Legal Issues Presented

  1. Whether the respondents are obligated to evolve and implement a scheme for economic rehabilitation and health care for ex-workers exposed to mercury at the Clinical Thermometer Factory.
  2. Whether the first respondent violated provisions of the Factories Act, 1948 and environmental laws, warranting prosecution.
  3. Whether the Union of India should revise occupational health and safety standards and compensation amounts concerning mercury exposure under the Factories Act, 1948 and Workmen's Compensation Act, 1923.
  4. Whether the committee appointment order dated 09.09.2011 should be quashed in relation to its first term of reference.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court, with the assistance of counsel, acknowledged the constructive and positive approach of the parties in reaching a settlement. The Court accepted the settlement dated 04.03.2016, which included detailed procedural steps for disbursing compensation cheques to beneficiaries under the supervision of an appointed Advocate Commissioner. The Court emphasized strict compliance with the terms, including identity verification, affidavit submission, and reporting obligations of the Advocate Commissioner. The Court also ordered confidentiality of the settlement and commended the parties' cooperative conduct.

Holding and Implications

The writ petitions are disposed of in terms of the settlement dated 04.03.2016. The Court appointed Mr. Suhrith Parthasarathy as Advocate Commissioner to oversee the settlement's implementation, with fees borne by the first respondent. The Court imposed no costs and closed related miscellaneous petitions.

The direct effect is the formal acceptance and enforcement of the settlement agreement, ensuring rehabilitation and compensation to affected workers. No new legal precedent was established.

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    Ponds Hindustan Lever Limited v. Hindustan Unilever Limited

    Writ Petition No. 8291 of 2006 filed under Article 226 of the Constitution of India praying for issue of Writ of Mandamus to direct the 2nd and 7th respondents to evolve a scheme of economic rehabilitation and health care for the ex-workers of the 1st respondent's Clinical Thermometer Factory at Kodaikanal and other victims, who have suffered exposure to the toxic mercury emitted by the 1 respondent and direct the 1 respondent to bear the costs of the same; direct the 2 and 7 respondents to prosecute the 1 respondent for violation of the provisions of the Factories Act, 1948 and the various Environmental Laws, Regulations and Orders with regard to the operations of the 1 respondent's Clinical Thermometer Factory at Kodaikanal, Tamil Nadu and direct the 7 respondent, Union of India to revise the occupational health and safety standards with reference to mercury exposure in the Factories Act, 1948 and the compensation amounts in the Workmen's Compensation Act, 1923.

    Writ Petition Nos. 23748 & 23749 of 2011 filed under Article 226 of the Constitution of India praying for issue of Writ of Certiorari calling for the records of the respondent comprised in its Order No. C-018019/08/2011-ISH. II dated 09.09.2011 appointing a Committee and, quash the same in so far as it deals with the first term of reference.

    COMMON ORDER

    Sanjay Kishan Kaul, C.J:— Writ Petition No. 8291 of 2006 has been filed by the Ponds Hindustan Lever Limited Ex. Mercury Employees' Welfare Association against Hindustan Lever Limited and the State Government authorities apart from Union of India on account of the health damages suffered during working in the factory.

    2. With the assistance of the learned counsel for parties, a settlement has been worked out and that is why W.M.P No. 7761 of 2016 had been filed. We may notice that the name of the first respondent in W.P No. 8291 of 2006 stands changed as Hindustan Unilever Limited. Memo of parties be corrected accordingly.

    3. The prayer made in W.M.P No. 7761 of 2016 is for taking on record the settlement dated 04.03.2016 signed by the petitioner and respondent No. 1, making consent of the other respondents unnecessary. The obligations have to be discharged by 28 March, 2016, for which appointment of an Advocate Commissioner is sought and it is proposed that Mr. Suhrith Parthasarathy (Mobile No. 8939717592) Advocate, No. 39, Law Chambers, High Court, Chennai-600 104 be appointed as the Advocate Commissioner and the matter has to be thereafter reported for compliance to this Court. Ordered accordingly.

    4. The fee of the Advocate Commissioner is to be paid by the first respondent in W.P No. 8291 of 2006 and it is proposed and agreed that keeping in mind the larger task involved, it should be fixed at Rs. 4,00,000/- (Rupees Four Lakhs), apart from out of pocket expenses.

    5. In view of the aforesaid, W.M.P No. 7791 of 2016 is ordered.

    6. There are, however, certain directions required to be passed in the writ petitions as a consequence of the aforesaid application and the settlement arrived at between the parties.

    7. The parties jointly request that the warrant issued to the Advocate Commissioner shall be in the following terms:-

    “(1) The Advocate Commissioner shall oversee the handing over of Cheques by Hindustan Unilever Limited to the beneficiaries enlisted in Annexure-A & B of the Memorandum of Settlement dated 04.03.2016 (Para VI (e) pg. 15)

    (2) Each beneficiary shall prove his/her identity to the Advocate Commissioner by producing valid photo identity card issued by the Government before receiving the Cheque.

    (3) In case the beneficiary/beneficiaries is/are the legal heirs of a deceased person, then such beneficiary/beneficiaries shall also produce the Legal Heir Certificate before receiving the Cheque.

    (4) The beneficiaries shall furnish two originals of duly executed affidavit in the format annexed to the Memorandum of Settlement as Annexure-E to the Advocate Commissioner before receiving the Cheque. One original affidavit received from each of the beneficiary shall be handed over by the Advocate Commissioner to Hindustan Unilever Limited before handing over the Cheques. (Para VIII Pg.16.Para IX Pg.17)

    (5) Upon furnishing the documents and affidavit mentioned above, the Cheques shall be handed over to the beneficiaries.

    (6) Any Cheque that could not be handed over to the beneficiaries shall be collected by the Advocate Commissioner from Hindustan Unilever Limited and submitted to the Hon'ble Court.

    (7) The Advocate Commissioner shall submit the second original affidavit received from each of the beneficiaries at the time of handing over of Cheques to this Hon'ble Madras High Court.

    (8) The Advocate Commissioner, if he deems necessary, shall be at liberty to seek police protection from the Jurisdictional Police. The Jurisdictional Police shall provide the required protection, if so requested by the Advocate Commissioner.

    (9) Report shall be filed by the Advocate Commissioner along with the affidavits from beneficiaries and undisbursed Cheques, if any, by 28.03.2016”

    8. The affidavits filed by the workmen are thus taken on record apart from the Memo of Settlement dated 04.03.2016, with a direction that the Memorandum of Settlement dated 04.03.2016 be kept confidential and retained in a sealed cover in the Registry.

    9. We are, in fact, impressed with the constructive and positive approach of the learned counsels to work out the settlement and we must express our appreciation for the said constructive approach.

    10. The writ petitions are, thus, disposed of in terms of the settlement. No costs. Consequently, WMP. Nos. 9228, 9236 of 2006; 40 of 2013 are closed.

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    Ponds Hindustan Lever Limited v. Hindustan Unilever Limited
    (Mar 9, 2016)