Legal Question in Business Law in India

STATEMENT OF FACTS

 Henitt Recyclers Co Ltd is a Canadian company engaged in collection and management of waste (including e-work) especially in the Canadian and Latin American Countries. They usually operate their business in collaboration with the Green House Sentinals Pvt Ltd, a UK based company. Union of India adopted a new policy to improve its Economic and International Relations as part of this policy investments and technologies were invited from foreign countries, especially to improve the areas in which she is inherently weak. Waste Management and Environmental Protection and development of the rural areas were given special emphasis. A global meet was organised for identifying better opportunity for the same. The meet named �AGE� (Adventure for Green Environment) identified few international interests and initiated prospect for an International Technology for Waste Management in India.

 A joint venture agreement was made between Green House Sentinals Pvt Ltd and Swasthya, a public Limited CO. In India, under the name of Swasthya Sentinal Co Ltd for undertaking waste management business. Both the companies had agreed to contribute to the functioning of the company and to share the profit and losses. As per the agreement Swasthiya provided with their 3 acre land and allied amenities in Special economic Zone located at Agatti in Lakshadweep. The concern started functioning on 6th October 2007. The agreement permitted by the Green House Sentinals Pvt Ltd to operate and manage the concerns for a period of ten years after which the entire technology and machinery installed by them will get transferred to Swasthiya. Environmentalist supported the concern as the technology imported seems to be highly productive. Subsequently certain actions taken in the Swasthiya Sentinals were highly criticized. The company already had certain International commitments. Green House Sentinals Pvt Ltd were involved in a contract with Hecitt Recyclers Co Ltd, the Canadian Co for recycling the waste and scraps collected from the American frontiers.

 The registered office of Green House Sntinals Pvt Ltd had practice of outsourcing and reallocating the waste collected from different parts of the worked to their plants located at different sites. Most of their consignments were moved to the African continent. Gradually the Green House Sentinals Ltd started transferring the waste collected by the Hewitt Recyclers Co Ltd to their plant in India. By virtue of this, two ships carrying nearly125 tonnes of waste each reached India in 2009 and the same was proceed successfully in India. Later few more consignments were chartered to India. Regent Superior a 1975 UK Cargo Ship sailed towards India with consignments and reached Indian Port.

 Meanwhile aggrieved by this, an environmental NGO named �Haritha Sena� started agitation against import and treatment of waste. They strongly opposed importing waste to India, where the environment risk due to pollution and waste deposition was already high. They filed a writ petition in the High Court demanding the prohibition of waste importing. Allowing the petition the court issued an order directing the company to stop the import and to take back the consignment to the source station of the wastes till the final order has pronounced.

 Aggrieved by this, the joint venture company moved an appeal before the Supreme Court and the same is pending. Meanwhile the consignment was already near the port of Minicoy. The order affected the financial standing of the company adversely. Seemingly it will also affect the relationship between Canada and UK. A private meeting was immediately arranged by Mr. Andrew Wilfred Zani, the Team Director of Green House Sentinals Plant in India in the same ship �Reagent Superior�. Since redirecting the ship back to the Canadian port would subject them to liability under the Canadian law, the parties agreed to discharge a nominal amount of the waste (about 10 tonnes) in the sea. In pursuance of this, the ship �Reagent Superior� sailed hours. Further the ship sailed upto 40 nautical miles and discharged the remaining scraps. A local fisherman happened to get a vague glimpse of this action while the discharge get was carried out. ON the way back to the shore fisherman informed the coast guard about the dumping. But the fisherman failed to convey about the exact details of ship because of heavy rain and storm.

 In order to enquiry upon the matter the coast guards set out immediately. Regend Superior was found about 129 nautical miles by the coast guard. The coastguards seized the ship and charged the captain and crew of the ship. Along with them, Mr. Andrew Wilfred Zani, and a few officials from the company in UK were caught. Criminal charges were levelled against them. An FIR was lodged against 15 persons, including the company officials for violating the order of the High Court and for unlawful discharge of waste. A petition under the Section of 482 of Crpc was filed for quashing the criminal proceedings. They contended that they were not answerable under the Indian Law and even if India had jurisdiction, it should be the company that should be booked and held answerable and not the officials and others. The petition was dismissed by the court. Aggrieved by this they approached the Honb�le Supreme Court of India through an appeal on ground of absence of jurisdiction and for non-jointer of the Swasthiya Sentinals Co Ltd.

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