State assures SC ₹70 cr payment to Assam Tea Corp workers over two financial years

Senior advocate Nalin Kohli, representing the state, conveyed the commitment to the bench stating that an affidavit detailing the timeline would be submitted within two weeks

Faced with the Supreme Court’s stern warning about selling off Assam Tea Corporation Limited’s (ATCL) assets to clear worker dues, the Assam government on Monday assured the court that it would pay ₹70 crore to the workers over the next two financial years.

(Representative file photo)

Senior advocate Nalin Kohli, representing the state, conveyed the commitment to a bench of justices Abhay S Oka and AG Masih, stating that an affidavit detailing the timeline would be submitted within two weeks.

“On instructions, senior counsel Nalin Kohli states that the amount of ₹70 crore will be paid within the next two financial years. Let the state file its affidavit within two weeks,” recorded the bench, scheduling the next hearing for January 24.

The top court was hearing a contempt petition for non-payment of dues to the workmen working in these tea estates of ATCL, a state-owned enterprise.

The decision comes against the backdrop of mounting pressure on the state government to address the plight of workers employed by ATCL, a state-run entity managing 14 tea gardens. During the previous hearing on November 14, the Supreme Court had asked ATCL to furnish details of its movable and immovable assets after the state expressed its inability to inject additional funds into the loss-making corporation.

ATCL has been grappling with financial instability for years, with its liabilities ballooning to ₹650 crore as calculated by a Supreme Court-appointed committee in 2020. This includes ₹414.73 crore in workers’ dues and ₹230 crore in unpaid provident funds. Despite a 2010 Supreme Court order directing payment, persistent non-compliance led to the filing of a contempt petition in 2012.

In February 2023, the Supreme Court directed the payment of ₹650 crore to 28,556 workers across Assam’s tea gardens, which include the 14 under ATCL. However, the state has consistently struggled to comply, citing financial constraints.

During the November 14 hearing, Assam chief secretary Ravi Kota, appearing virtually, informed the bench that the state cabinet had decided against further financial aid to ATCL.

Expressing dissatisfaction, the bench remarked: “If the state government is unwilling to pump in more funds, we will direct the sale of ATCL’s tea gardens to pay the dues of its employees, including provident funds.” The bench indicated that it may consider ordering the sale of ATCL’s assets if necessary to meet the dues.

Monday’s assurance from the Assam government marks a shift in its stance, likely influenced by the court’s pointed observations about its role as a welfare state. On that day, amicus curiae and senior counsel Gaurav Agarwal too highlighted the urgency of the situation, stating: “The workers cannot be left stranded.”

Justice Oka underscored the state’s responsibility to its citizens during the November 14 hearing, stating, “The state cannot claim it is obliging workers by making payments. It is a welfare state and must take care of its people.”

Senior advocate Kohli acknowledged the challenge of balancing state deficits while addressing arrears but emphasized that the ₹70 crore commitment was a step towards resolving the long-standing issue.