The Supreme Court of India has directed the Assam government to disburse Rs 70 crore to the Assam Tea Corporation Ltd (ATCL) in two equal installments to settle long-standing dues of its employees. The ruling, issued on Friday by a bench headed by Justices Abhay S Oka and Ujjal Bhuyan, aims to address the financial hardships faced by workers of the financially beleaguered corporation, which operates 14 tea estates.
The court’s decision came after prolonged negotiations, with the state eventually agreeing to the payment structure. “It took some time till the state government came around,” remarked the justices. The first installment of Rs 35 crore is scheduled for payment by June 30, 2024, with the second to follow by June 30, 2026.
Further, the Supreme Court stipulated that the funds must be distributed to the workers on a ‘pro-rata’ basis as soon as they are deposited with the ATCL. The justices also noted that they would only consider releasing the state from any further financial liabilities after the full amount has been paid.
The backdrop to this directive involves a long-standing legal tussle over non-payment of wages and pensionary benefits to ATCL employees. The initial petition for this cause was filed in 2006 by the International Union of Food and Agriculture Workers, leading to a 2010 Supreme Court order mandating the payment of dues. However, due to non-compliance, a contempt petition was filed in 2012.
In an intriguing twist, the court also hinted at potential drastic measures, such as the sale of the 14 tea gardens, if the financial obligations to the workers are not met. This was considered after the state cabinet, influenced by Assam chief secretary Ravi Kota’s admissions, concluded that further financial injections into the failing corporation would not be prudent.
A committee established by the Supreme Court in 2020 estimated the total dues of the workers at about Rs 414.73 crore, with an additional Rs 230 crore owed in provident funds. On February 7, 2023, the court had already ordered the payment of approximately Rs 650 crore to cover dues for workers across 25 tea gardens, including 15 managed by ATCL.
