Guwahati: The Supreme Court on Thursday directed the Chairman and Managing Director of Assam Tea Corporation Limited (ATCL) to submit a detailed affidavit by December 7, outlining all the corporation’s immovable and movable properties. This step is intended to facilitate a potential liquidation of assets to address long-standing dues owed to tea garden workers.
The apex court is considering the sale of ATCL’s assets to fund the payment of approximately Rs 70 crore in dues owed to workers employed by the state-owned corporation. This directive follows the court’s earlier order for the Assam Chief Secretary to appear in person on November 14 to explain why there had been no significant progress by the Assam government to settle these dues.
The order came amid an ongoing contempt petition dating back to 2012, which pertains to unpaid wages and allowances for ATCL workers.
Justice Abhay S. Oka, heading the bench with Justice A.G. Masih, emphasized, “From the statement made by Ravi Kota, Chief Secretary of Assam, it is evident that the state is not in a position to assist ATCL, an entity it created. Currently, the dues to the workers amount to approximately Rs 70 crore. We direct the Chairman and Managing Director of ATCL to file an affidavit detailing all immovable and movable properties, so that at the appropriate stage, the court can pass orders for the sale of these assets. This affidavit, along with necessary documents, must be submitted by December 7.”
The Chief Secretary informed the bench of the state Cabinet’s decision, noting, “Further diverting budgetary resources to a loss-making entity like ATCL is not prudent or in the public interest. ATCL is advised to pursue statutory remedies available under the Companies Act, IBC, or NCLT.”
Last year, the Supreme Court mandated that both state and central governments disburse Rs 645 crore to 28,556 workers across 25 tea gardens, of which 15 are managed by ATCL. However, financial constraints were cited by the Assam government as a reason for non-payment to current and former workers, with counsel stating that lessees of several tea estates failed to maintain profitability, exacerbating ATCL’s financial woes.
The counsel further highlighted that ATCL had incurred losses of Rs 120 crore over the past two years. He pointed out that Assam, a revenue-deficit state, faced a dilemma between paying current salaries or addressing past dues, as 6.45 percent of its revenue was already committed to similar expenses.
Justice Oka reaffirmed the state’s responsibility as a welfare entity, asserting, “You are not obliging the citizens by paying.” He noted that ATCL, which manages 14 tea estates, may see its assets sold if a viable payment plan is not presented by the state.
“You are not coming with any scheme, any assurance, or any outer limit for making payment,” Justice Oka said, addressing the Chief Secretary.
The state’s counsel argued that funds from the Union government were not forthcoming and proposed that one-time financial aid could potentially be provided by the Tea Board. Justice Oka warned that without a substantial proposal, the Court might order the sale of ATCL’s assets. “Tell us in the next hearing how property will be sold to secure funds to pay the workers,” he instructed.
The case’s roots trace back to 2006 when the International Union of Food and Agricultural Workers filed a petition demanding overdue wages and benefits for Assam tea workers. Despite a 2010 Supreme Court directive for payment, full compliance was not achieved, leading to the current 2012 contempt petition.
In 2020, the Supreme Court appointed a one-member committee led by retired Justice A.M. Sapre to calculate the dues of Assam tea workers. The committee’s findings revealed that Rs 414.73 crore was owed to workers, with an additional Rs 230.69 crore due to the Provident Fund Department.
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