The recent court judgment on Bhopal tragedy has brought in legal issues related to International business for close scrutiny. Many composites MSMEs import raw materials or use imported materials supplied by dealers of foreign manufacturers and some supply finished products made of such imported materials to other countries. They also buy materials from the Indian subsidiaries of foreign companies. Can the foreign suppliers and the principals of foreign companies be responsible if any material related mishap occurs?

One statement from USA said that Union Carbide India is an Indian company and the parent Union Carbide, USA is not responsible for the actions of the Indian Subsidiary. If this is so, does the parent company have no responsibility on materials made by Indian subsidiary using their technology? In two other instances, I received two enquiries for carrying out design from abroad. Both said that I have to sign a non-disclosure agreement (NDA) before the problem is discussed. This part is perfectly alright. However, there were clauses in both that says the jurisdiction of adjudication is at their respective countries. This clause will appear harmless and may never be activated. However, if the other party has some doubt that I have disclosed something and if it is activated, I have to go to that country or engage somebody there to fight my case for not even doing a work but for just reading their report. As a principle, I did not sign both agreements.

I am not a legal expert to comment on both these problems and, I can only pose the problems to others for their comments. Is there a way out? We will be very glad if some industry or legal experts, who can comment on this, can write an article in this journal clarifying these problems and their possible solutions. It can definitely serve as guidance to all those composites MSMEs look for International Business.

Yours sincerely,

   
Dr. N.G. NAIR
Honorary Editor