SC orders Assam govt to pay Rs 70 cr to clear dues of tea corp workers

The Supreme Court on Friday asked the Assam government to pay Rs 70 crore in two equal installments of Rs 35 crore each to cash-strapped Assam Tea Corporation Ltd to clear long-pending dues of its workers.

A bench comprising Justices Abhay S Oka and Ujjal Bhuyan said, "It took some time till the state government came around.

It accepted the proposal of the state government to pay the amount in two tranches and said the first installment would be paid by June 30.

The second installment would be deposited with the competent authorities of the ATCL by June 30, 2026.

"We make it clear that as and when the amount is deposited with the ATCL, it will disburse the same on 'pro-rata' basis," the bench said.

The top court said it would decide whether the state government should be absolved of any further liability only after it deposits Rs 70 crore.

On December 9, last year, the state government said Rs 70 crore will be paid by two yearly installments and sought four weeks' time to file an affidavit.

It asked the ATCL chairman to submit the details of its movable and immovable properties after the state government said it did not have capacity to infuse more funds into the loss making corporation, which runs 14 tea estates.

It recorded the submission of then Assam chief secretary Ravi Kota who said the state tried its best to bail out the cash-strapped ATCL but was unable to rescue it.

Kota said the state cabinet had decided it wouldn't be prudent to pump-in more funds into the loss making enterprise.

The bench observed given the situation it would direct selling the 14 tea gardens to pay off the dues of its employees, including provident funds.

The top court was acting on a contempt plea over non-payment of dues to the workmen of the ATCL, a state-owned enterprise.

The contempt petition was filed in a 2006 petition filed by the International Union of Food and Agriculture Workers for payment of dues and pensionary benefits.

The top court in 2010 directed for payment of dues to the workmen but after non-compliance of direction, a contempt petition was filed in 2012.

A committee set up by the top court in 2020 calculated the dues of workers to be around Rs 414.73 crore and around Rs 230 crore towards provident funds.

On February 7, 2023, the top court directed payment of around Rs 650 crore towards 28,556 workers of the 25 tea gardens of Assam which include 15 estates owned by the ATCL.

The rest were private gardens.