Assam: Supreme Court Orders Government to Pay Rs 70 Crore to Settle Workers' Dues

GUWAHATI: The Supreme Court has directed the Assam government to pay Rs 70 crore in two installments of Rs 35 crore each to the financially struggling Assam Tea Corporation Ltd. to settle the overdue payments to its workers.

The ruling was delivered on Friday by a bench which was led by Justices Abhay S Oka and Ujjal Bhuyan, seeking to alleviate the financial difficulties faced by the workers of the Assam Tea Corporation Ltd., which manages 14 tea estates.

The bench remarked, "It took some time until the state government came around." The state has finally agreed to the payment plan. The first installment of Rs 35 crore is set to be paid by June 30, 2024, followed by the second installment on June 30, 2026.

The bench stated, "We clarify that once the amount is deposited with the ATCL, it will be disbursed on a 'pro-rata' basis." The justices also observed that they would only consider relieving the state of any further financial liabilities after it deposits the Rs 70 crore.

On December 9 last year, the Assam government said it would pay the Rs 70 crore in two yearly installments and asked for four weeks to submit an affidavit. This decision is part of a long-running legal fight over unpaid wages and pension benefits for ATCL employees.

The court instructed the ATCL chairman to provide details of its movable and immovable properties after the state government stated that it lacked the capacity to inject additional funds into the loss-making corporation.

The initial petition for this case was filed in 2006 by the International Union of Food and Agriculture Workers. This legal action ultimately resulted in a 2010 Supreme Court ruling that mandated the payment of dues.

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