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2023 DAILYLAW 1588 (GAU)

ASSAM TEA EMPLOYEES PROVIDENT FUND ORGANIZATION v. UNION OF INDIA AND ORS

WP(C)/6583/2023 · 2026-01-27

Arun Dev Choudhury

Writ Petition (Civil)body2023

Judgment text

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Page No.# 1/3 GAHC010257062023 undefined THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/6583/2023 ASSAM TEA EMPLOYEES PROVIDENT FUND ORGANIZATION REP BY ITS ADDITIONAL PROVIDEN FUND COMMISSIONER HAVING ITS HEAD OFFICE AT NIDHI BHAWAN LALMATI GUWAHAT DIST. KAMRUP M ASSAM PIN 781029 VERSUS UNION OF INDIA AND ORS REP BY THE SECRETARY MINISTRY OF FINANCE DEPTT OF ECONOMIC AFFAIRS NEW DELHI 110001 2:THE UNION BANK OF INDIA REP BY ITS MANAGING DIRECTOR HAVING ITS REGISTERED OFFICE AT 239 UNION BANK BHAVAN VIDHAN BHAVAN MARG NALIMAN POINT MUMBAI PIN 400021 3:THE UNION BANK OF INDIA REP BY THE AUTHORISED OFFICER ASSET RECOVERY BRANCH 14/1B EZRA STREET KOLKATA 700001 4:BORAKAI TEA ESTATE REP BY ITS MANAGER P O DWARBUND DIST. CACHAR ASSAM PIN 788113 5:M/S BABU AND COMPANY REP BY ITS DIRECTOR HAVING ITS REGISTERED OFFICE AT H M P HOUSE 4 FAIRLIE PLACE KOLKATA PIN 70000 For the appellant/petitioner(s) : Mr. J. Borah, Advocate For the Respondent(s) : Mr. K.N. Choudhury, Sr. Advocate Mr. M. Sarma, Advocate Page No.# 2/3 – B E F O R E – HON’BLE THE CHIEF JUSTICE MR. ASHUTOSH KUMAR HON’BLE MR. JUSTICE ARUN DEV CHOUDHURY 28.01.2026 (Ashutosh Kumar, CJ) We have heard Mr. J. Borah, learned Advocate for the petitioner and Mr. K. N. Choudhury, learned Senior Advocate, assisted by Mr. M. Sarma, learned Advocate for the respondent Nos. 2 and 3. This writ petition has been filed by the petitioner/Assam Tea Employees Provident Fund Organization, a statutory body under the Assam Tea Plantations Provident Fund (and Pension Fund) (and Deposit Linked Insurance Fund) Scheme Act, 1955 (hereinafter referred to as “Act of 1955), challenging the e- auction sale notice issued by the respondent/Union Bank of India on 13.10.2023 for the Borakai Tea Estate, which had become a chronic defaulter, owing Rs. 1.66 Crore in provident fund dues, gratuity, deposit-linked insurance and administrative cost with interest. The Act of 1955 mandates 12% contribution from both employers and employees (wages up to Rs. 15,000/- per month) to provide social security for tea workers in Assam’s tea plantations. The petitioner/organization, managed by a Board of trustees, claims a statutory first charge under Section 10(2) of the Act of 1955 over the estate’s assets for those of the workers, whom they insist for being paid in priority to all other debts, including bank mortgages due to the non-obstante clause overriding other laws. The fact of the case, in short, is that the Barakai Tea Estate (respondent No. 4), owned by respondent No. 5, defaulted on loans by the Union Bank of India (respondent Nos. 2 and 3), whereupon the provisions of the SARFAESI Act, 2002 were invoked for taking symbolic possession and auction of the estate with the reserve price of Rs. 9.91 Crore. Since the petitioner/organization was never notified of the possession or Page No.# 3/3 auction, which they learnt only through a newspaper notice sometimes in October, 2023, they have challenged such auction sale claiming their first charge on the sale proceeds. Today, Mr. J. Borah, learned Advocate for the petitioner submits that whatever was due to the petitioner/organization has been paid by the respondent Nos. 2, 3 and 8 and only a small amount of Rs. 2,67,920.44 is left to be paid, which is towards the insurance claim of the workers. Mr. K. N. Choudhury, learned senior Advocate appearing for the respondent Nos. 2 and 3 submits that the amount due towards the insurance claim of the workers shall be paid to the petitioner/ organization within a period of two weeks from today. With the afore-noted assurance given by Mr. Choudhury on behalf of respondent Nos. 2 and 3, learned counsel for the petitioner/organization does not press this petition any further. The grievance of the petitioner stands fully redressed. The embargo put on disbursement of the sale proceeds/issuance of sale certificate, thus, stands lifted. The writ petition stands disposed off. JUDGE CHIEF JUSTICE Comparing Assistant