The Supreme Court has directed the Chief Secretary of Assam to appear before the Court on November 14, 2024, to address concerns regarding the lack of progress in settling long-overdue payments owed to tea garden workers in the state.
A bench comprising Justice Abhay S Oka and Justice Augustine George Masih expressed their dismay over the unpaid wages of these workers, criticizing both the Assam government and the Assam Tea Corporation Limited (ATCL).
“We direct the Chief Secretary of State of Assam to personally remain present in the Court on the next date, i.e., 14th November 2024. The state will have to seriously answer the question why there is no sincere effort made to pay the dues of the workmen who have worked in tea estates owned by the state of Assam,” Justice Oka stated.
Justice Oka further highlighted that without imposing stringent measures, the workers would continue to face hardships. “We will tell you, we agree with your criticism that it is harsh. We are dealing with dues of poor workmen. Unless we pass harsh orders, they will not get the money. We accept your fair criticism that we are harsh”, he remarked in response to the counsel for Assam, who described the order as severe.
During the proceedings, Justice Oka pointed out that while ATCL generated Rs. 38 crores from rental activities, the workers had not been compensated. The Court sought clarification on whether any portion of the remaining Rs. 4 crores would be allocated to settle the workers’ unpaid wages. He stressed that ATCL, as an extension of the state, holds a responsibility to ensure that workers receive their salaries and entitlements.
The Assam government’s counsel cited significant financial losses, claiming that several tea estate lessees were unable to maintain profitability, leading them to return the gardens to ATCL and worsening the financial situation.
Justice Oka suggested that if the state could not efficiently manage the tea estates, it may be necessary to sell the properties to ensure the workers are paid their dues. The counsel explained that regulations prevent the use of tea garden lands for purposes other than tea cultivation.
The Supreme Court reiterated the requirement for the Chief Secretary of Assam to appear in person at the next hearing on November 14, 2024, to explain the lack of genuine efforts to pay the outstanding dues. Additionally, the Court issued a notice to the Union Ministry of Commerce, following the Assam counsel's statement indicating a central government role in ensuring the payment of the workers' dues.
“See, unless we pass harsh orders, money will not come. So therefore. There are 2 governments before us and one agency and instrumentality of the The state government. We will see how one of them pays”, Justice Oka remarked.
In a previous ruling in 2023, the Supreme Court had ordered both the state and central governments to distribute Rs. 645 crores to 28,556 workers across 25 tea gardens, 15 of which are operated by the state-run ATCL.
The matter traces back to 2006 when the International Union of Food and Agricultural Workers filed a petition demanding overdue wages and benefits. Despite a Supreme Court directive in 2010 to pay these dues, compliance remained incomplete, culminating in the current contempt petition initiated in 2012.
In 2020, the Supreme Court established a one-person committee led by retired Justice AM Sapre to calculate the workers' dues. The committee concluded that Rs. 414.73 crores were owed to the workers, in addition to Rs. 230.69 crores owed to the Provident Fund Department.