1. Unpaid wages of workers in the unorganized tea sector across multiple states — recovery proceedings and litigation pending — petition for interim relief. (Para 1 , 5 , 9 , 12 )
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2018 Supreme(SC) 569
SUPREME COURT OF INDIA
S.A. BOBDE, L. NAGESWARA RAO, JJ.
International Union of Food Agr. & Ors. - Petitioners
Versus
Union of India & Ors. - Respondents
Contempt Petition (C) No. 16 of 2012 In Writ Petition (C) No. 365 of 2006
Decided On : 04-04-2018
Important Points
The State Governments are responsible for ensuring payment of unpaid wages to workers and can recover the amounts from the employers.
Subject
Labor Law - Wage Disputes
Headnote
Unpaid Wages - Tea Estate Workers - Assam, West Bengal, Tamil Nadu, Kerala - [Payment of Wages Act, 1936 - Section 3, 4, 5, 7, 15] - The court ordered the respective state governments to pay the necessary funds to the unpaid workers upon verification within 60 days. It also directed the governments to recover the amounts from the employers and to notify the owners of the tea gardens about the proceedings.
Fact of the Case:
Workmen, who worked for about 20 years, have not been paid their wages. Some have resorted to suicide. The State Governments are directed to complete the process of appropriation and update the list of unpaid retired workers for payment.
Finding of the Court:
The court found the conditions of the workers pitiable and ordered the State Governments to pay the necessary funds to the unpaid workers upon verification within 60 days.
Issues: Unpaid wages of tea estate workers, pitiable conditions, recovery of dues, and verification of unpaid retired workers.
Ratio Decidendi: The primary liability is of the employers, but the State Governments are directed to pay the necessary funds to the unpaid workers and recover the amounts from the employers.
Final Decision: The State Governments are directed to pay the necessary funds to the unpaid workers upon verification within 60 days and recover the amounts from the employers.
Legal Category Hierarchy
Advocates:
Advocate Appeared:
For the Petitioners: Mr. Colin Gonsalves, Ms. Aditi Gupta, Ms. Olivia Bang, Ms. Jyoti Mendiratta
For the Respondents: Mr. Bhaskar P Gupta, Ms. Sangeeta Mandal, Ms. Sukanya Basu, for M/S. Fox Mandal & Co., Mr. Siddharth, Mr. Amit Kr. Agrawal, Mr. Aman Lekhi, Ms. Vibha Datta Makhija, Ms. Rashmi Malhotra, Mr. S.K. Singhania, Mrs. Anil Katiyar, Mr. G. Prakash, Mr. Jishnu M.L., Mr. Priyanka Prakash, Mrs. Beena Prakash, Mr. Vijay Shankar V.L., Mr. Ajay Marwah, Mr. Mool Singh, Mr. Debal Banerji, Ms. Astha Sharma, Mr. Amit Verma, for M/S. PLR Chambers And Co., Mr. Maninder Singh, Mr. Shuvodeep Roy, Mr. Ankit Roy, Mr. Prabhash Bajaj, Mr. Sayooj Mohan Das, Mr. Debojit Borkakati, Mr. V. Giri, Mr. T.R.B. Siva Kumar, Mr. K.V. Ram Kumar
Advocate Appeared:
For the Petitioners: Mr. Colin Gonsalves, Ms. Aditi Gupta, Ms. Olivia Bang, Ms. Jyoti Mendiratta
For the Respondents: Mr. Bhaskar P Gupta, Ms. Sangeeta Mandal, Ms. Sukanya Basu, for M/S. Fox Mandal & Co., Mr. Siddharth, Mr. Amit Kr. Agrawal, Mr. Aman Lekhi, Ms. Vibha Datta Makhija, Ms. Rashmi Malhotra, Mr. S.K. Singhania, Mrs. Anil Katiyar, Mr. G. Prakash, Mr. Jishnu M.L., Mr. Priyanka Prakash, Mrs. Beena Prakash, Mr. Vijay Shankar V.L., Mr. Ajay Marwah, Mr. Mool Singh, Mr. Debal Banerji, Ms. Astha Sharma, Mr. Amit Verma, for M/S. PLR Chambers And Co., Mr. Maninder Singh, Mr. Shuvodeep Roy, Mr. Ankit Roy, Mr. Prabhash Bajaj, Mr. Sayooj Mohan Das, Mr. Debojit Borkakati, Mr. V. Giri, Mr. T.R.B. Siva Kumar, Mr. K.V. Ram Kumar
Table of Contents
2. State governments contend lack of negligence or dispute the quantum of outstanding dues, while petitioners seek immediate payment for workers in pitiable conditions. (Para 6 , 12 )
3. The court finds the condition of unorganized sector workers pitiable and justifies temporary state funding for wages actually rendered despite primary employer liability. (Para 1 , 6 , 10 )
4. In exceptional circumstances involving the pitiable condition of unorganized sector workers, the State may provide interim wage relief and subsequently recover the amount from primary employers. (Para 6 , 10 )
5. States directed to disburse interim funds for unpaid wages upon verification, with the right to recover such amounts from primary employers as revenue demands. (Para 3 , 7 , 10 , 12 )
6. Can the State provide interim relief for unpaid wages when the primary liability rests with the employer?
Yes, in cases where workers of the unorganized sector are in pitiable conditions, the State may temporarily provide funds for wages actually rendered, provided it retains the right to recover those amounts from the primary employers. (Para 6 , 10 )
7. How should the disbursement of interim wage relief be managed to ensure fairness?
Payments should be made upon verification of identity and claims, including disbursement to legal representatives of deceased workers, and conducted in chronological order of retirement. (Para 3 , 7 , 10 , 12 )
8. By what mechanism can the State recover interim funds paid to workers from the actual employers?
The State is entitled to recover the disbursed amounts from the employers whose primary duty was to pay the wages, treating the recovery as a revenue demand or through any other efficacious manner. (Para 3 , 7 , 10 , 12 )
ORDER :
In this case, we find that workmen, who worked for about 20 years have not been paid their wages. Their condition is pitiable and some of them have resorted to commit suicide. In some cases, these workmen are part of an unorganized Sector. In some cases proceedings have been initiated by the workmen and in some cases by the Government for recovery of dues. The amounts have been locked in litigation and without any relief to the workers. Having regard to these circumstances, we consider it appropriate to hear the State Government on the question of interim relief that may be granted to the workmen.
IN RE: ASSAM
2. The State Government has responded to the proposal in a most positive manner. Shri Maninder Singh, learned Additional Solicitor General appearing for the State of Assam has stated that there are about 16,133 retired workers and staff of the corporation, many of whom had retired over 20 year back and 839 retired persons but continuing in service. The Corporation owns 15 Tea Estates in the State of Assam. It is also stated across the Bar that appropriation, i.e., the money would be placed in the hands of the Executive within a period of 90 days. However, an MOU would be signed by the State Government and the Assam Tea Corporation during that period.
3. In these circumstances, we pass the following order:
(i) State of Assam is directed to complete the process of appropriation within a period of 60 days from today. The MOU shall also be signed during this period.
(ii) In the meanwhile, the State Government along with Corporation shall update the list of unpaid retired workers and notify them that they would pay the amounts. For this purpose the workers shall appear and have their identities and claims duly verified.
(iii) The State Government would put in hand the necessary funds of Rs. 99 Crores to the Corporation which shall disburse the said amount upon verification of these retired employees.
(iv) In case the workers have died, the amounts shall be disbursed to the legal representatives upon verification of their status by the Corporation.
(v) Upon verification of their identities and claims they shall make payment in chronological order, i.e., those who have retired earlier shall be paid before those who have retired later.
(vi) The process of verification and identification shall be commenced immediately.
(vii) The Government shall be entitled to recover those amount from all those employers whose primary duty was to pay the wages, as a revenue demand or any other efficacious manner.
We are conscious that the total number of garden whose workers are unpaid is about 22. For this purpose we consider it appropriate to pass orders in relation to other gardens after hearing the owners. The list of gardens which are not owned by the Assam Tea Corporation is as follows:
Sl. No.
Name of the Address of the Tea Estate
Name of the Address of the Company
1.
Rangoliting Tea Estate P.O. Lohoal, Dist – Dibrugarh, Assam – 786010
M/s Ganeshka Kanoi Tea Company, Mithapukhuri Road, Jorhat, Assam – 785001
2.
Wokha Tea Estate P.O. Furkating Dist- Golaghat Assam – 785610
Kharikatia Tea & Industries Ltd. CF-366, Salt Lake City Sector-1, Kolkata – 700064
3.
Haotoli Tea Estate P.O.: Hautley, Dist-Golaghat Assam-785702
Boruah & Boruah Tea & Trading Pvt. Ltd. Bordoloinagar, Sector-2, Lane-5 Tinsukia-786125
4.
Chandmari Tea Estate P.O. - Tinsukia, Dist- Tinsukia Assam – 786125
Chandmari Tea Co. (P) Ltd 37 A.T Road, Talap Bali Bazar, PO- Talap, Tinsukia, Assam-786156
5.
Gillapukhuri Tea Estate, P.O- Borguri, Dist- Tinsukia, Assam – 786126
Gillapukhuri Tea Company Ltd. 9, Brabourne Road, 3rd Floor, Kolkata- 700001
6.
Hukanpukhuri Tea Estate, P.O.- Tinsukia, Dist-Tinsukia, Assam – 786125
Nandlall & Sons Tea Industries Pvt. Ltd. Bishmile, P.O – Chabua, Dist – Dibrugarh, Assam –
