SC mulls ordering sale of Assam Tea Corporation’s assets to pay dues to workers

Guwahati, Nov 15: With approximately Rs. 70 crores dues of the workers, the Supreme Court on Thursday sought details of all the assets of the Assam Tea Corporation Limited (ATCL) by December 7.

Directing the Chairman and Managing Director of ATCL to file a detailed affidavit by December 7, a bench of Justices Abhay S Oka and AG Masih expressed that it will order sale of the assets so that the proceeds can be used to pay the dues of the tea garden workers.

“From the statement made by Shri 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 crores. 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 7th of December,” the Court ordered.

The directive comes after Chief Secretary Ravi Kota submitted the state cabinet’s decision over the failure to solve the outstanding payments, which have remained unpaid despite multiple orders over the years by the apex court.

“Further diverting budgetary resources to a loss-making company (ATCL) is neither prudent nor in the interest of public at large. ATCL is free to explore any statutory remedies including the Companies Act, I and B code, NCLT, we are quite okay,” the Chief Secretary said.

The counsel for the state highlighted that the corporation had sustained losses of Rs. 120 crores in both the current and previous years and Assam being a ‘revenue-deficit state’, had to face dilemma between allocating resources for current salaries and settling past dues.

The counsel further noted that 6.45 percent of the state’s revenue was already allocated to such expenses.

With the absence of a substantial proposal from the State, Justice Oka said that the Court might have to proceed with orders for sale of ATCL’s assets.

“Tell us in the next hearing how property will be sold to get the funds to pay the workers,” Justice Oka instructed.