Will Pay Tea Garden Workers' Dues Of Rs. 70 Crores Within Two Years: Assam Tells Supreme Court

A bench of Justice Abhay S. Oka and Justice Augustine George Masih recorded the statement of the counsel for Assam that the payment will be made in two yearly instalments. This decision comes after the Court expressed its intention to liquidate the assets of ATCL to pay the dues.

“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 stated.

The Court granted the state four weeks to submit the affidavit and listed the matter for further hearing on January 24, 2024.

The counsel for the state said that the instalments will be made in 2025-26 and 2026-27, respectively.

Earlier Proceedings

The Chief Secretary of Assam, Ravi Kota, had on the previous date informed the Court that diverting additional budgetary resources to ATCL, a loss-making entity, would not be prudent. He stated that ATCL was free to explore statutory remedies under the Companies Act, the Insolvency and Bankruptcy Code, or the National Company Law Tribunal. The counsel for the state cited severe financial constraints, highlighting a Rs. 120-crore loss by ATCL in consecutive years and Assam's status as a revenue-deficit state.

Justice Oka had emphasized the state's duty as a welfare state and urged the state to present a viable payment scheme, warning that the Court might order the sale of ATCL's assets if the government failed to propose a concrete solution.

Background

In 2006 when the International Union of Food and Agricultural Workers filed a petition before the Supreme Court demanding payment of overdue wages and benefits. Despite a Supreme Court direction in 2010 ordering the disbursement of the dues, compliance remained incomplete, leading to the present contempt petition in 2012.

In 2020, the Supreme Court had constituted a one-person committee, headed by retired Justice AM Sapre, to calculate the dues owed to the workers. According to the committee's findings, Rs. 414.73 crores were owed to the workers, while an additional Rs. 230.69 crores were due to the Provident Fund Department.

In 2023, the Supreme Court had directed both the state and central governments to disburse Rs. 645 crores to 28,556 workers from 25 tea gardens, including those managed by the state-owned ATCL.

Case no. – Contempt Petition (C) No. 16/2012

Case Title – International Union of Food Agricultural & Ors v. Union of India