Supreme Court Orders Assam to Pay Tea Workers Amid Financial Crisis

The Supreme Court has ordered the Assam government to pay Rs 70 crore in two installments, to the cash-strapped Assam Tea Corporation Ltd, to clear long-pending dues of its workers. The state government agreed to the payment plan despite its financial constraints, following a long-standing legal battle.

The Supreme Court mandated that the Assam government pay Rs 70 crore to the financially distressed Assam Tea Corporation Ltd (ATCL), to resolve prolonged worker dues. The payment will be made in two installments of Rs 35 crore each.

A Supreme Court bench, comprising Justices Abhay S Oka and Ujjal Bhuyan, accepted Assam's proposal to spread the payment over time, with the first installment due by June 2023 and the second by June 2026. It emphasized that the funds be distributed pro-rata to the workers.

This decision follows a failed attempt to fully rescue the state-owned enterprise and comes after a contempt plea was filed due to non-payment of workers' dues, initially ordered in 2010. The ongoing proceedings have highlighted a debt of around Rs 650 crore owed to over 28,000 workers of Assam's tea gardens.

(With inputs from agencies.)