SC Directs Assam Tea Corporation Chairman To List Properties Owned

The Supreme Court on Thursday directed the chairman of Assam Tea Corporation Limited (ATCL) to provide details of the corporation's movable and immovable assets. This came after the Assam government informed the court that it lacked the capacity to inject further funds into the loss-making corporation, which operates 14 tea gardens.

A bench comprising Justices Abhay S Oka and Augustine George Masih heard the submissions of Assam Chief Secretary Ravi Kota, who appeared virtually. Kota explained that the state had made considerable efforts to support ATCL but had been unable to resolve its financial distress. He further stated that the state cabinet had deliberated on the matter and concluded that it would not be prudent to allocate more funds to the struggling corporation.

The bench observed that if the state was unwilling to invest additional money, it would consider the sale of ATCL's 14 tea gardens to cover the outstanding dues owed to employees, including provident fund payments.

The case pertains to a contempt petition filed for non-payment of dues to workers employed at ATCL’s tea estates. This petition stems from a 2006 case initiated by the International Union of Food and Agriculture Workers, seeking payment of workers' dues and pensionary benefits.

During the proceedings, the bench inquired how ATCL planned to settle the arrears, given that it had acknowledged its liability to pay the workers. Senior advocate Nalin Kohli, representing ATCL and the Assam government, informed the court that the corporation was facing a funds shortage and could only pay either current or past salaries, but could not be expected to make recurring payments for arrears. He added, "We are a deficit state and do not have funds. Tomorrow, again someone will come and urge the court to pass direction for payment of arrears."

Also Read: Inadequate Wages, Ineffective Welfare Schemes of Assam Tea Workers: CAG Report

In response, the bench emphasized that as a welfare state, the government had an obligation to care for its citizens and could not claim to be "obliging by making payment to its workers." Kohli suggested that the Tea Board of India might contribute some funds to assist ATCL.

Justice Oka then remarked that with ATCL owning 14 tea gardens, the court would consider ordering their sale to ensure the workers were paid. Kohli sought additional time to consult with the Chief Minister about potential solutions for the corporation.

Amicus curiae advocate Gaurav Agarwal stressed the need for the state to devise a solution, as the workers could not be left without compensation.

The bench adjourned the matter for further hearing on December 9 and has asked ATCL’s chairman to submit a detailed list of the corporation’s assets.

This case follows a previous Supreme Court order on October 21, when it had summoned Assam’s Chief Secretary and demanded answers regarding the state’s failure to address the workers’ dues. The court had first directed the payment of the workers’ dues in 2010, and after the state’s non-compliance, a contempt petition was filed in 2012.

In 2020, a committee appointed by the court estimated the workers’ dues at approximately Rs 414.73 crore, with an additional Rs 230 crore owed towards provident funds. In a further ruling on February 7, 2023, the court directed the payment of around Rs 650 crore to 28,556 workers from 25 tea gardens, including 15 managed by ATCL, with the remainder being private estates.

Also Read: Tea Crisis Deepens: Assam Tea Factories Close Doors to Small Tea Growers