Supreme Court orders Assam Tea Corporation to list assets amid financial woes

The Supreme Court on Thursday asked the chairman of Assam Tea Corporation Limited to submit the details of movable and immovable properties owned by it after the state government said it does not have capacity to pump-in more funds into the loss making corporation, which runs 14 tea gardens.
     
A bench of Justices Abhay S Oka and Augustine George Masih noted the submission of Assam Chief Secretary Ravi Kota that the state has tried its best to bail out the cash strapped Assam Tea Corporation Limited (ATCL) but has not been able to bring it out from the situation.
     
Kota, who appeared virtually before the court, submitted that the state cabinet has discussed the situation of ATCL and decided it will not be prudent to pump-in more funds into the loss making enterprise.
     
The bench observed if the state government is not willing to put in more money into the corporation, then it will direct the selling of its 14 tea gardens to pay the dues of its employees, including the provident funds.
     
The top court was hearing a contempt petition for non-payment of dues to the workmen working in these tea estates of the ATCL, a state-owned enterprise. The contempt petition has been filed in the 2006 petition filed by the International Union of Food and Agriculture Workers for payment of dues and pensionary benefits.

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During the hearing, the bench at the outset asked the ATCL how it was going to pay the dues as it was not disputing the liability to pay the workers.
     
Senior advocate Nalin Kohli, appearing for the ATCL and the Assam government, told the bench that the corporation is having shortage of funds and it can pay the present salaries or the past one but it cannot be treated as a precedent and cannot be directed to pay the arrears time and again.
     
"We are a deficit state and do not have funds. Tomorrow, again someone will come and urge the court to pass direction for payment of arrears," he submitted.
     
The bench said the state is a welfare state and it has to take care of its citizens and it cannot say that it is obliging by making payment to its workers.
     
Kohli said the tea board of India can help the ATCL by putting some funds into it.
     
Justice Oka said the ATCL is owing 14 tea gardens and it will order for sale of these tea gardens for paying the workers.
     
The senior advocate sought one more opportunity to take instructions and said that he would talk to the chief minister over what should be done in case of the ATCL.
     
Amicus curiae advocate Gaurav Agarwal said the state has to come up with some solution as the workers cannot be left stranded.
     
The bench said it is listing the matter for further hearing on December 9 and asked the chairman of the ATCL to furnish a list of movable and immovable properties.
     
On October 21, the top court while summoning the Assam chief secretary had said, "The Government of Assam will have to seriously answer the question why there is no sincere effort made by the Government of Assam and the ATCL to pay the dues of the workmen who have worked in the tea estates owned by the state of Assam."
     
The top court had 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 had directed payment of around Rs 650 crore towards 28,556 workers of the 25 tea gardens of Assam which include 15 run owned by the ATCL. The rest are private gardens.