Kumlai Tea Estate

Background
Kumlai tea estate covering 612.74 hectares of land, with 403.14 hectares under tea, employs 1118 permanent workers and has a population of over 8000 people dependent on it. The hospital register however show a population of 5079. The estate was a well run and premier estate of the Doars region till a decade back, and was known to produce very good quality tea. Just last year, despite a lot of turmoil and mismanagement in the past decade, tea manufactured at the estate received a prize, King of Doars, for its very excellent quality. The estate is run by the Kumlai Tea and Industries Limited, the owner being a Shri SK Kanoi, who is also the owner of 3-4 other estates in Assam. He is also the Director of Agio Paper and Industries Ltd which was first started as BDT Business Ltd (Buxar Doars Tea ) from their original tea company that owned Chinchula TE. Chinchula TE lay abandoned for many years but this paper manufacturing company seems have flourished during the same period.

Sequence of events:Though the list of workers dues now presented by the union show defaults since 2005, this does not seem to have been taken up as an issue by the unions till recently. For example, Progressive Tea Workers Union (PTWU) on 8.11.2011, had a meeting in the ALCs presence with the Kumlai estate management. Many demands were raised, but not the very basic demands that are being raised now and which effect the survival of the garden, such as the huge amount of workers dues and the neglect of production and lack of investment in the garden were not raised. On 22.2.2012, all unions wrote to the Assistant Labour Commissioner (ALC) drawing his attention to the problems of workers such as the irregular payment of fortnightly wages and monthly salaries of staff and substaff, and non-payment of annual leave wages and arrears. They also threatened to start agitations on these issues. On 27.2.2012, again PTWU wrote about these issues to the ALC. During this period, the pressure from the PF Commissioner seems to have also been growing. According to a document provided to us by the Bagan Bachao Joint Progress Committee, several recovery certificates were issued and bank accounts were attached on 17.4.2012, and two FIRs were filed on 5.1.2011 and again on 7.5.2012. On 8.6.2012, the problem of huge arrears in PF payments was brought up with the Regional PF Commissioner by the PTWU. It was soon after this on 21.6.2012 that the management fled from the garden. After this the PTWU wrote repeatedly to the ALC asking him to call the management and to take steps to get the garden re-opened. Three dates for reconciliation were fixed on 9.7.201, 18.7.2012 and 23.7.2012 by the ALC, but the management did not turn up for even one. To protest this inaction, the workers and all unions, after informing the authorities, took up a road block programme at Damdim More, during which the police took action of filing cases against 4 of the workers. (Case no 372 dated 25.7.2012 u/s 143,341 and 283) Soon after on 30th and 31st July, in quick succession over a period of two days three persons died on the estate. These were

Report prepared after a New Trade Union Initiative team visit on 5th and 6th August 2012

Sunita Bhakta aged 25 years, w/o Shyam Majhi. She was a daily rated worker, who supported a husband, three children and her aged parents in laws. The only income for the family through this period for the entire family was the wages her husband earned form two weeks of work as a casual construction workers amounting to Rs.1680 @ Rs 120 per day. Sunita had given birth to a baby just after the garden was abandoned by the management. The garden doctor certified that she died of severe aneamia. Sunitas mother is a retired worker from the garden, but despite the fact that she has retired a year ago she receives no pension, nor has she been paid her gratuity. The family had to spend Rs.7000-8000 for various customary rites during Sunitas child birth. This was taken by withdrawing the from Sunitas mother in laws Provident Fund. Sunitas father in law has worked for two days on MGNREGS works in the garden but has received no wages so far. Rita Oraon aged 53 years w/o late Chetro Oraon, also a daily rated worker. She lived with her aged mother in law. Her daughter and her son in law , along with her grandchild were also living with her during the closure. The daughter feels she died of tension due to closure, having high blood pressure. The garden doctor certified that she died of unknown fever i.e. she had fever, was tested for malarial parasite, but did not have malaria. Hence he had written unknown fever. Sonia Oraon d/o Etowa Oraon aged two years old, also certified similarly to have died of an unknown fever.

When the garden workers informed the Advisor about these deaths over the phone, she immediately informed the Minister of Food and Supplies as well as the District Magistrate. Immediately after this, 6 kgs of food grains per family were given, and medical facilities were started. 11 patients were admitted to the garden hospital on the 4th August and were transferred to the sub-divisional hospital on the 6th August, the first day of our visit. The deaths as well as the road block acted as a galvanizer and the management did finally turn up for a reconciliation meeting with the SDO on 3rd August 2012. The terms of settlement with all unions present were as follows:1. The management would deposit the electricity bill by 6th August, so that production could be resumed. 2. Out of the due fortnightly payment of wages, payment for 1 fortnight would be made on 4.8.2012 along with salary of sub-staff and staff for the month of June. 3. The fortnightly payment for 11.8.2012 would be made on 16.8.2012, and monthly payment for July will be made by 25.8.2012. 4. A payment schedule for all other dues as well as a plan of action for the revival of the garden duly signed by the Managing Director of the garden would be submitted with 16.8.2012, with copies to all trade unions. 5. The Government was requested by the management to continue employment generation programmes in the estate for the sustenance of the workers. 6. The unions were requested by the management to cooperate in the revival of the garden.

The Present Situation

The estate began defaulting in payment of its employers contribution to Provident Fund from 2005 onwards. According to figures provided by the Bagan Bachao Joint Progress Committee, an all trade union committee formed on 24.7.2012 after the garden was abandoned, by March 2012, the amount owed to the Employees Provident Fund (EPF) alone amounted to Rs.2.29 crores. In addition, gratuity of Rs.82,59,898 remained unpaid from 2000 onwards . In all total dues amounted to Rs. 5.32 crores, within which workers
Report prepared after a New Trade Union Initiative team visit on 5th and 6th August 2012

dues were Rs.3.96 crores or an average of Rs.35,446 per permanent worker- equivalent to 13-14 months of wages i.e.
5,31,59 Total dues non labour dues Electricity labour dues per worker due ,554.00 1,18,95 ,960.00 16,3 4,634.00 3,96,28 ,960.00 3 5,446.30

Non-payment of electricity bills worth Rs.16.34 lakhs and coal, chemicals etc worth Rs. 1.19 crores means inputs in the factory and estate are also a problem. In addition during our meeting with the management they admitted to defaulting on a UCO bank loan of Rs.8.5 crores. The neglect of the garden is also apparent in the decline of its output, which according to the Bagan Bachao Committee Joint Progress Committee has almost halved, coming down to 1287 kgs per hectare in 2011 from 2157 kgs in 1988. According to the workers, the decline in output is due to neglect by the owners, who have not replaced old bushes or done infilling (there is an average of 18% vacancy in the bushes); have not provided for proper irrigation from 2005 onwards; have lagged in maintenance work and have no mother bush or nursery. We were also taken around the garden where we saw large stretches of vacant land between bushes. We also observed that plucking had not taken place since abandonment of the garden in early June 2012. This has led to overgrowing of the bushes, which now need to be cut with sickles, meaning that production of leaves from such bushes will only be possible after two- three weeks. The workers also showed us bushes which had been attacked by pests due to lack of irrigation, which meant permanent destruction of many bushes. The health of the workers also does not seem very good. A quick look at the hospital register figures shows possibilities of higher morbidity and mortality i.e. Number of deaths 2010 2011 2012 May 2 4 1 June 2 4 4 July 5 5 9 August 0 0 1 (till 6th) Number of patients in OPD 2010 2011 2012 141 142 93 119 132 146 141 61 166

July 29th July 30th July 31st

Major health problems according to the estate doctor are diarroheal diseases, along with chronic malnutrition. Only one fourth of the population has deep tubewell water, which is safe, for drinking.

The Future
When we visited the estate on 6th and 7th July, the management had returned to the garden. They had, as per the agreement before the SDO, paid a fortnights wages and
Report prepared after a New Trade Union Initiative team visit on 5th and 6th August 2012

paid their electricity bills. Production has since been resumed. However, there were certain very worrying signs towards which the administration needs to pay heed . 1. The management filed before the BIFR in 2009 and the latest position of the case before the BIFR says abated. The proceedings of the last date (27.03.2012) before BIFR are as follows:2.0 In the hearing held today (27.03.2012) the representative of UCO Bank referred to their written submission dated 17.03.2012 stating that the Bank has taken a symbolic possession of company s assets under SARFAESI Act and also published possession notice in the news paper on 03.07.2011. The UCO Bank is the only secured creditor of the company. He further added that there is no interim order of either the Hon ble High Court or Ld. DRT against the Bank in respect of pending proceeding. He requested the Bench to abate company s reference. 2.1 The representative of IOB stated that they are unsecured creditor and endorsed the request of UCO Bank. 2.2 The Ld. Advocate of the company referred to its written submissions dated 15.03.2012 submitted that the UCO Bank made a false statement that there is no interim order in this matter. In fact the Ld. DRT Kolkata, vide their order dated 23.02.2012 have passed an interim order directed parties to maintain status quo till next date of hearing, which is 30.04.2012. In view of interim order of Ld. DRT the Company s counsel requested the Bench defer the case to any date beyond 30.04.2012 and till then parties may maintain status quo. He also added that the company has served copy of their written submission dated 15.03.2012 on UCO Bank at its Kolkata office. He promised to submit proof of service to the Board within one week. 3. Having considered the submissions made during the hearing and materials on records the Bench observed that the action under section 13(4) of the SARFAESI Act has been completed by the UCO Bank who is the sole secured creditor of the company and have taken over the symbolic possession of assets of the company. Possession notice has also been published in the news paper. Though the DRT has granted interim stay on further proceedings but till date has not set aside the action taken by UCO Bank under section 13(4) of SARFAESI Act. Once the action taken by more than 75% of the secured creditors of the company under section 13(4) of the SARFAESI Act is completed, the BIFR loses its jurisdiction over the company s reference. Therefore the BIFR cannot proceed further and by virtue of 3rd proviso to the Section 15(1) the company s reference will stands abated. Hence the Bench abated the company s reference no. 35/2009. All the creditors are at liberty to recover their dues as per law.

In discussions with us the management claimed to have gone in appeal before the AAIFR

2. The management does not seem to have any long term recovery plan in mind and
does not seem to have so far seriously put its mind to a plan to repay its dues as well as to help the garden to recover. On 16th August, the plan they have put before the SDO makes no reference at all to any future investment or plan of recovery that they have for the estate.

3. The management says its lease expired 7-8 years ago, but they continue to pay
rent and taxes for the land despite not being lease holders. This has been done due to some legal technicality when the garden changed hands in 1985 .

Conclusions and Recommendations

Kumlai is an estate which owes over Rs.3.96 crores to its workers. Workers have already faced closure/abandonment for a brief period resulting in deaths of three persons, seemingly due to starvation . The management has been neglecting investment and management in the estate, and has instead tried to get protection from debtors by going before the BIFR. However, the UCO Bank has got a positive order from the BIFR on 27.3.2012, and is now free to recover its debts from the company. The company claims to have gone to the AAIFR in appeal. At the same time, the company does not seem to have a proper lease on the estates land. Nor does it seem to be putting its mind to putting in place a proper plan for recovery.
Report prepared after a New Trade Union Initiative team visit on 5th and 6th August 2012

It seems therefore that the following steps need to be urgently taken by the Government to protect the interest of the workers and to prevent further starvation deaths:1. The possession of the estate should be immediately taken away from the Kumlai Tea and Industries Limited, which in any case does not seem to have a proper lease. The process to find a new owner should be started immediately, failing which the Bagan Bachao Joint Progress Committee should be allowed to run the estate with Government supervision. 2. The garden should be declared closed and relief measures that are supposed to be started in any closed garden as per Supreme Court orders, such as provision of 100 days of work under MGNREGA; AAY rations; declaration of BPL status and extension of all BPL entitlements such as old age pension, NMBS, NFBS ; FAWLOI; mobile medical camps etc. should be immediately started. 3. Legal steps should be initiated/expedited by the PF Commissioner and by the Government for recovery of labour dues and PF from the owners. In this context we would also like to draw the attention of the Government to the order of the Supreme Court in Writ Petition (Civil) No.365 Of 2006(International Union Of Food Agriculture and Plantation Workers & Ors vs. Union Of India & Ors) where the court on 6.8.2010 ordered that the Central Government must use the Tea Act to take over and manage such gardens where workers were suffering due to abandonment.

Report prepared after a New Trade Union Initiative team visit on 5th and 6th August 2012