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Supreme Court Orders Assam Tea Corporation To Detail Assets For Potential Sale To Settle Workers' Dues

 

GUWAHATI: The Supreme Court instructed the Assam Tea Corporation Limited (ATCL) on Thursday, November 14 to provide a comprehensive list of all its assets by  December 7, as part of an ongoing case concerning unpaid wages for tea garden workers. Justice Abhay S Oka and Justice AG Masih ordered the Chairman and Managing Director of ATCL to file an affidavit detailing the corporation’s movable and immovable properties to potentially sell these assets to raise funds to settle the workers’ outstanding dues.

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The Court's directive came after it was made clear that the Assam state government, which created ATCL, is no longer in a financial position to assist the corporation. The state’s Chief Secretary, Ravi Kota, revealed that the total dues owed to workers currently amount to approximately ₹ 70 crore, with the state unable to provide further support due to severe financial constraints. 

The Court had previously summoned the Chief Secretary to explain why the state had failed to meet its obligations despite multiple Supreme Court orders. In his response, Kota outlined the state’s position, stating that continuing to fund the loss-making ATCL was neither prudent nor in the public interest. He suggested that ATCL explore statutory remedies, including those under the Companies Act, the Insolvency and Bankruptcy Code, and the National Company Law Tribunal (NCLT).

During the hearing, the state’s counsel emphasised that the financial difficulties facing Assam, described as a “revenue-deficit state,” made it challenging to balance the need to pay current workers while addressing past wage arrears. He noted that ATCL had incurred losses of  ₹ 120 crore in the last two years alone, and 6.45 per cent of the state’s revenue had already been earmarked for employee-related expenses.

Justice Oka responded sharply, highlighting the state's responsibility to its citizens. He remarked that the Court would consider ordering the sale of ATCL’s tea estates if the state failed to present a viable solution for the payment of workers’ dues. ATCL currently manages 14 tea estates, and the Court emphasised that without an acceptable plan from the state, it might have no choice but to instruct the liquidation of these assets to raise the necessary funds.

The Assam government’s counsel also indicated that funds from the Union Government had not been forthcoming, and suggested the possibility of one-time financial assistance from the Tea Board. However, Justice Oka remained firm, stressing that in the absence of a concrete proposal, the Court would proceed with plans for asset liquidation to secure the workers’ payments.

The dispute dates back to 2006, when the International Union of Food and Agricultural Workers filed a petition demanding the payment of overdue wages and benefits for workers in Assam’s tea gardens. Despite the Supreme Court issuing an order in 2010 to disburse the dues, the payments remained incomplete, resulting in the present contempt petition filed in 2012. In 2020, a committee headed by retired Justice AM Sapre was appointed to calculate the total dues, revealing that ₹ 414.73 crore were owed to workers, with an additional ₹ 230.69 crore owed to the Provident Fund Department.

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