Guwahati: The Supreme Court on Thursday directed the Chairman and Managing Director of Assam Tea Corporation Limited (ATCL) to submit the details of all the property of ATCL, including both immovable and movable property.
The apex court is considering the sale of ATCL’s assets to generate funds for settling the outstanding dues of approximately Rs 70 crore owed to the state-owned corporation’s employees.
The Court had earlier ordered Assam’s Chief Secretary, Ravi Kota, to appear in person on November 14 and provide an explanation for the state’s inability to clear the outstanding payments, which have remained unpaid despite multiple Supreme Court orders over the years.
The order came amid an ongoing contempt petition dating back to 2012, which pertains to unpaid wages and allowances for ATCL workers.
The bench comprising Justice Abhay S Oka and Justice AG Masih Court directed the Chairman and Managing Director of ATCL to file a detailed affidavit by December 7, listing all of the corporation’s property, to facilitate potential asset liquidation if required.
“From the statement made by Ravi Kota, Chief Secretary of Assam, it is apparent that now the state is not in a position to help out ATCL, which is an entity created by the state itself. As of today, the dues of the workers are to the tune of approximately Rs 70 crore,” the court stated.
“We direct the Chairman and Managing Director of the Assam Tea Corporation to file an affidavit on record giving all the details of the immovable and movable properties held by ATCL with all its particulars so that at appropriate stage court will have to pass an order for sale of assets held by ATCL. Affidavit along with the necessary documents shall be filed by ATCL by December 7,” the Court ordered.
The Chief Secretary informed the bench of the state Cabinet’s decision, noting, “Further diverting budgetary resources to a loss-making entity like ATCL is not prudent or in the public interest. ATCL is advised to pursue statutory remedies available under the Companies Act, IBC, or NCLT.”
During the hearing, counsel for the state explained that severe financial constraints hindered payment to both current and former workers.
The counsel highlighted that ATCL had sustained losses of Rs 120 crore in both the current and previous years.
He further added that Assam, being a “revenue-deficit state”, faced a dilemma between allocating resources for current salaries or settling past dues, noting that 6.45 percent of the state’s revenue was already allocated to such expenses.
Last year, the Supreme Court mandated that both state and central governments disburse Rs 645 crore to 28,556 workers across 25 tea gardens, of which 15 are managed by ATCL.
Justice Oka stressed the state’s duty as a welfare state, stating, “You are not obliging the citizens by paying.”
He further observed that ATCL, as a state-owned entity, managed 14 tea estates, suggesting that if the state did not present a viable payment scheme, the Court will consider ordering the sale of these estates to generate funds for the workers.
Addressing the Chief Secretary, Justice Oka stated, “You are not coming with any scheme, any assurance, or any outer limit for making payment.”
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The state’s counsel argued that funds from the Union government were not forthcoming and proposed that one-time financial aid could potentially be provided by the Tea Board.
Justice Oka said that in the absence of a substantial proposal from the state, the Court might have no option but to proceed with orders for sale of ATCL’s assets.
