Supreme Court Demands Assam’s Plan for Rs 70 Crore Tea Worker Dues

The Supreme Court on Monday directed the Assam government to submit a detailed affidavit outlining its plan to pay Rs 70 crore in outstanding dues to workers of 15 tea estates managed by the state-owned Assam Tea Corporation Limited (ATCL).

A bench comprising Justice Abhay S Oka and Justice Augustine George Masih recorded the Assam government’s assurance that the payments would be made in two yearly instalments. The Court had earlier expressed its intent to liquidate ATCL’s assets if the dues were not cleared.

“Learned Senior Counsel appearing for the State of Assam states that the balance amount of approximately Rs 70 crores will be paid by two yearly instalments. We direct the state to file an affidavit in that regard. We grant time of four weeks to the state government to file the affidavit in the above terms. For considering the affidavit filed by the State of Assam, list on January 24, 2024,” the Court ordered.

The counsel for Assam clarified that the instalments would be disbursed during the financial years 2025-26 and 2026-27. The state now has four weeks to submit its affidavit, with the next hearing scheduled for January 24, 2024.

Previous Developments

During earlier hearings, Assam’s Chief Secretary, Ravi Kota, informed the Court that allocating additional budgetary resources to ATCL, a loss-making entity, was unfeasible. He suggested that ATCL could pursue statutory remedies under the Companies Act, the Insolvency and Bankruptcy Code, or approach the National Company Law Tribunal (NCLT).

Highlighting the financial strain, the counsel for the state cited ATCL’s cumulative losses of Rs 120 crore over consecutive years and Assam’s classification as a revenue-deficit state. Justice Oka, however, stressed Assam’s obligation as a welfare state, urging the government to devise a concrete payment plan. The bench warned that failing to do so might compel the Court to order the sale of ATCL’s assets.

Long-Standing Legal Battle

The case dates back to 2006 when the International Union of Food and Agricultural Workers petitioned the Supreme Court, demanding payment of overdue wages and benefits to plantation workers. In 2010, the Supreme Court directed the disbursement of these dues, but compliance remained incomplete, leading to a contempt petition in 2012.

In 2020, the Court appointed retired Justice A M Sapre to a one-person committee to calculate the dues. The committee’s report revealed that Rs 414.73 crore was owed to workers, alongside Rs 230.69 crore in arrears to the Provident Fund Department.

In 2023, the Supreme Court ordered the state and central governments to jointly disburse Rs 645 crore to 28,556 workers across 25 tea gardens, including those managed by ATCL.

The upcoming affidavit from the Assam government is expected to shed light on its strategy to fulfil its obligations, marking a critical step in resolving this long-standing issue.

Also Read: SC Directs Assam Tea Corporation Chairman To List Properties Owned