Guwahati: The Supreme Court has 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.
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 corporation, which operates 14 tea estates.
The bench said, “It took some time till the state government came around.”
The state has eventually agreed to the payment structure. The first installment of Rs 35 crore is scheduled for payment by June 30, 2024, with the second to follow 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 justices also noted that they would only consider releasing the state from any further financial liabilities only after it deposits Rs 70 crore.
On December 9, last year, the Assam government said Rs 70 crore would be paid in two yearly installments and sought four weeks’ time to file an affidavit.
The backdrop to this directive involves a long-standing legal tussle over non-payment of wages and pensionary benefits to ATCL employees.
It asked the ATCL chairman to submit the details of its movable and immovable properties after the state government said it did not have the capacity to infuse more funds into the loss-making corporation.
In 2006, the International Union of Food and Agriculture Workers filed the initial petition for this case. This legal action eventually led to a 2010 Supreme Court decision mandating the payment of dues.
However, due to non-compliance, 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.
ALSO READ: Assam govt to clear tea garden workers’ dues of Rs 70 cr within 2 years
On February 7, 2023, the top court directed payment of around Rs 650 crore to cover dues for workers across 25 tea gardens of Assam, including 15 managed by ATCL.
