In a decisive step toward addressing long-standing unpaid wages, the Supreme Court has ordered Assam Tea Corporation Limited (ATCL) to submit a detailed affidavit listing all of its immovable and movable properties by December 7, 2024. This directive, issued on November 14, highlights the Court’s intent to consider the sale of ATCL’s assets as a means to settle approximately Rs. 70 crore in dues owed to its tea garden workers.
The bench, consisting of Justices Abhay S. Oka and A.G. Masih, voiced concerns over the persistent non-payment of wages and benefits to workers, despite multiple Supreme Court orders over the years. The directive for a detailed property inventory follows the Court’s dissatisfaction with the response of Assam’s Chief Secretary, Ravi Kota, who appeared before the Court to explain the state’s financial limitations and inability to provide further assistance to ATCL.
Court’s Observations on State’s Responsibility
In addressing Chief Secretary Ravi Kota, Justice Oka remarked on the state’s welfare obligation, stating, “You are not obliging the citizens by paying.” The Court criticized the state’s lack of a clear payment plan or any assurance on when the outstanding wages would be settled. Justice Oka pointed out that if the state continued to refrain from presenting a viable solution, the Court would consider ordering the liquidation of ATCL’s assets to generate funds for the workers’ dues.
Assam’s Financial Constraints and Appeal to Central Government
Chief Secretary Kota informed the Court that Assam’s financial position as a “revenue-deficit state” has been strained, resulting in a challenge between funding current salaries and addressing historical dues. He noted that nearly 6.45 percent of the state’s revenue is already allocated to similar expenses. Additionally, Kota reported that the state cabinet had decided it could no longer divert budgetary resources to support ATCL—a loss-making entity. However, he suggested that one-time assistance from the Tea Board could provide temporary relief.
In response, Justice Oka instructed the Chief Secretary to explore the specifics of property liquidation as a potential source of funds, signaling that the Court may proceed with an asset sale order if no viable alternatives emerge.
Background of the Case
The issue of unpaid dues for ATCL workers has a long legal history, beginning with a petition filed in 2006 by the International Union of Food and Agricultural Workers before the Supreme Court. The petition demanded overdue wages and benefits for workers across Assam’s tea gardens. In 2010, the Supreme Court directed the disbursement of these dues, but compliance has been partial, leading to a contempt petition filed in 2012 to enforce the initial order.
In 2020, the Court appointed a one-man committee, led by retired Justice A.M. Sapre, to calculate the total dues owed to workers. This committee concluded that Rs. 414.73 crore was owed to the workers, with an additional Rs. 230.69 crore due to the Provident Fund Department. In 2023, the Supreme Court issued an order requiring both the state and central governments to disburse Rs. 645 crore to 28,556 workers across 25 tea gardens. ATCL, a state-owned entity, manages 15 of these gardens.
Next Steps
With the upcoming deadline of December 7, the Court awaits ATCL’s affidavit detailing the corporation’s properties. This filing will enable the Court to assess the potential for asset liquidation to settle the outstanding dues. The case is set for further hearing on December 16, 2024, where the Court expects an update on property liquidation possibilities if the state cannot propose a sustainable payment plan.
Case Details
International Union of Food Agricultural & Ors v. Union of India: Contempt Petition (C) No. 16/2012
Lawcutor 