HC dismisses Duncan’s petition

SNS, Kolkata, 16 March 2016: Justice Sanjib Banerjee on Tuesday dismissed the petition filed by the Duncan tea estate against the notification issued by the Centre on 28 January regarding takeover of the management of six of their tea estates. Justice Banerjee said that Rs.5 lakh has to be paid by the Duncan to the Centre through the Tea Board.

Justice Banerjee also ordered that both the Centre and the state should use their supreme power to pay the tea garden workers their dues and also to reinstate the workers and restart the tea gardens as soon as possible. Justice Banerjee further stated in the order that the petitioner( Duncan) has no merit regarding challenging of the notification issued by the Centre on 28 January and it is clear from the records and documents relied upon by the Centre that all the conditions have been fulfilled for section 16 E of the Tea Board Act.Thus the Centre’s decision cannot be questioned.

Duncan had challenged the notification of the Centre of 28 January to take over six of their tea estates and moved Calcutta High Court on 3 February stating that they have the infrastructure to run the six tea gardens in question. Justice Sanjib Banerjee on 19 February ordered Duncan tea estate to clear all the wage arrears of the tea workersby 29 February. Justice Banerjee also stated that a sum of Rs.4 crore has to be deposited by Duncan on 22 February in an account opened by the appointed special officer, otherwise the unconditional interim order on the notification of 28 January issued by the Centre stands to be vacated.

On 26 February, Duncan Tea Estates counsel advocate Anindiya Mitra had submitted to Chief Justice Manjula Chellur and Justice Arijit Banerjee division bench that since they suffered an injunction over sale of their produce, they were unable to deposit Rs.4 crore by the stipulated time given to them by Justice Sanjib Banerjee. Previously, advocate Anindo Mitro, counsel for Duncan, submitted that the reason for giving the notification under 16 E of the Tea Board Act, 1953, had not been disclosed, also the reasons, which had resulted in the Centre’s decision to take over the tea gardens was unknown. Such decision had probably been taken to throw Duncan out and bring some other garden owner.

Mitro had further submitted that what the Centre could have done was to take control of the tea unit, restart it and then hand it over to Duncan again once the production starts. Secondly, January to February is the cultivation time.While the tenders opened in the end of February,by 10 March the tenders are finalised. Thus, if there was a takeover now, then no entrepreneur will be interested. Thirdly, the Board for Industrial and Financial Reconstruction (BIFR) scheme was under process. If Duncan was not part of the management, then how would they pay the workers of different tea gardens.

Tea Board’s counsel, Advocate Tilak Bose and Biswarup Bhattacharya had submitted that on 28 January, the Centre had given a letter instructing Tea Board that whatever steps they take should be done with consultation of the state. Tea Board further submitted that they are ready to take control of the the six tea gardens after they are handed over from Duncan. The Centre had authorised the Tea Board to take over the management control of six gardens of the G P Goenka-headed Duncan Industries in North Bengal.

The Union Ministry of Commerce and Industry invoked a rarely used section of the Tea Act of 1953 to take control of the gardens in the Dooars, stating the tea gardens owned by the Duncans are being managed in a manner highly detrimental to the tea industry and to public interest. The gardens, which are officially open but are ailing, can potentially generate 10 million kg of tea and employ 17,555 workers. Chaired by Gouri Prasad Goenka, Duncan, which has 14 gardens in Bengal,has run up mounting dues on salary and statutory benefits.