Bhopal Gas Tragedy: ‘Reverse Triangular’ Merger With UCC Absolves Liability, Dow Chemicals Tells Trial Court

Bhopal (Madhya Pradesh): During a trial court hearing to discuss Indian courts’ jurisdiction over the US company, Dow Chemical referred to its merger with Union Carbide Corporation (UCC) as a “ reverse triangular merger,” which absolves it of the latter’s liabilities. 

Bhopal Group for Information and Action (BGIA) said that it had filed an application before the court seeking details of the business integration plan of the merger between UCC and Dow Chemical on 31 July, 2024 with the CBI’s support. The details would have made it easier for the court to see that Dow Chemical and Union Carbide are the same, it added. 

The case related to the 1984 Union Carbide gas disaster was listed on Thursday for the final arguments on the issue of Indian courts jurisdiction over Dow Chemical, which owns 

Union Carbide Corporation -USA.

Since October 2023, Dow Chemical has been arguing that Bhopal courts have no jurisdiction over an American company. Dow Chemical bought UCC-USA in 2001. 

Dow Chemical’s senior counsels Ravindar Shrivastav and Sidharth Luthra appeared during the hearing and argued that foremost the issue of jurisdiction has to be decided.

BGIA’s Rachna Dhingra said, “Dow Chemicals has been presenting arguments on personal jurisdiction of the company whereas in Indian criminal jurisprudence the law is clear that jurisdiction will be decided on the basis of where the crime has occurred and there is no doubt that the crime happened in Bhopal.  Dow Chemicals’ senior advocate Sidharth Luthra will present his arguments on international private law on January 18.