US court orders Mumbai firm to pay Rs 38.5 cr

Indian chemical manufacturer Gharda Chemicals has been ordered to pay around Rs 38.50 crore ($ 8.37 million) as damages by a US court for negligence that caused a fire at the warehouse and offices of Control Solutions Inc,a US-based maker of pesticides and other agro-chemical products,at Pasadena in Houston,the US. The fire was allegedly caused by a chemical product supplied by the Indian company six years ago.

However,Gharda has decided to challenge the verdict of the Harris County jury in Texas,the US,in a higher court. We will go for an appeal after studying the judgement. We are sure about the quality of our product Chlorpyrifos Technical,which is used to make pesticides supplied by us. It’s one of the best available in the market, said a spokeperson of the Rs 1,000 crore company in Mumbai. In a statement mailed to The Indian Express on Tuesday,Control Solutions Inc president Mark Boyd said,In the verdict issued late Friday,jurors in District Judge Dion Ramos 55th District Court found Gharda Chemicals and its US subsidiary completely liable for the March 8,2004,fire. Evidence at trial showed that Gharda Chemicals sold Control Solutions contaminated drums of Chlorpyrifos Technical. Investigations following the fire showed that the chemicals were contaminated with a flammable solvent.

According to the Gharda official,its product is exported and sold in many countries abroad,including the US. The same company has been buying the product even after the fire. In fact,over 50 per cent of our products are exported. Were still selling it in the US and other markets and it’s one of the best available in the market, he said. It is learnt that Control Solutions Inc,the buyer of the product,was sold to Makhteshim Agan of Israel later. The Israeli firm has been buying the product from Gharda even after the fire incident. This indicates that the same company is sure about the quality of the product. Otherwise,why should they buy the same product from us even after the fire destroyed their office, the Gharda official said.

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Boyds statement said,Shortly before the fire,the 32 drums of solid Chlorpyrifos were placed in a hot box in Control Solutions warehouse for melting based on procedures provided by Gharda Chemicals. At some point during the melting process,the

contaminated Chlorpyrifos exploded and caught fire. The fire quickly spread throughout the warehouse and Control Solutions nearby office building,destroying virtually everything inside. The Harris County Fire Marshall determined that the hot box was the source of the fire.