Delhi High Court makes way for release of Provident Fund to HPC employees

March 1: In a great relief for the HPC Paper Mill Employees of Nagaon and Panchgram, Delhi High Court on 25 February, 2020 passed an order whereby it was stated that the employees of the mills will no longer require to vacate their quarters. The National Company Law Tribunal (NCLT) had in November 2019 ordered the liquidation of the Nagaon and Cachar paper mills after the central government refused to release Rs 98 lakh that Hindustan Paper Corporation Limited (HPCL) owed to a company named Allow & Metals as payment for raw materials the latter supplied to the two paper mills.

In the second page of the judgement of Delhi High Court of 25 February, 2020, it was stated that, “Referring further to the affidavit of respondent no. 2. Mr. Sibal, submits that there is a fresh scheme of compromise which is to be explored by the Official Liquidator. in terms of the order of the NCLT. Therefore. respondent no. 2 will not be acting upon its eviction notice. In other words, there is no threat of the eviction oldie workmen from their current places of residence. No further orders are required in this regard.”

Further, the High Court also issued direction for immediate action to release the provident fund of the employees of both the defunct HPC paper mills at Nagaon and Panchgram who were without their salaries since the last 36 months.

The High Court stated, “….especially keeping in mind the fact that they have been without any payments for the past 36 months. About 60 odd workmen have since passed away. Each passing day of deprivation of the just dues of the workmen is a continuing assault on their rights. Therefore. it would be imperative that the statutory authority work out a scheme as soon as possible. to distribute monies to the workmen, to provide them immediate financial succor. The monies are required by the workmen now. Their need is immediate.”

In a joint press release issued by Ananda Bordoloi, General Secretary & Manobendra Chakraborty, President of the Paper Mill Employees Union said, “We believe the government if having sense of humanity they must realise the pathetic conditions of the workers & will discharge moral responsibilities by releasing all legal dues to save the lives of the workers. We shall continue our struggle till our last breath to protect lives & rights of the workers and save the industries of Assam in order to protect employment of two lakh youths.”

The Delhi High Court gave the order in response to a case No. W.P. (C) 1062/2020 of Cachar Paper Project Workers Union (INTUC) versus Union of India and others.

Cachar Paper Mill and Nagaon Paper Mill run by Hindustan Paper Corporation Limited (HPCL) have been non-functional since 20 October 2015 and 13 March 2017 respectively. The employees of the two mills have not received salaries for the past 36 and 34 months.