Conciliation Proceedings pursuant to the Order dated 25.09.2025 passed by the Hon’ble High Court at Calcutta, Circuit Bench at Jalpaiguri in W.P.A. No. 2115 of 2025 - NUDDEA PLANTATIONS LIMITED

 

BEFORE THE DEPUTY LABOUR COMMISSIONER, JALPAIGURI

KATHALGURI BUILDING,

KADAMTALA, JALPAIGURI – 735101

 

 

Reference : Memo No. 2261/DLC/JAL/2025, dated 27-09-2025, for joint conference on 10-10-2025, at 12:30 P.M. at the Office of the Deputy Labour Commissioner, Kathalguri Building, Kadamtala, Jalpaiguri-735101.

 

IN THE MATTER OF:

Conciliation Proceedings pursuant to the Order dated 25.09.2025 passed by the Hon’ble High Court at Calcutta, Circuit Bench at Jalpaiguri in W.P.A. No. 2115 of 2025;

 

AND

 

IN THE MATTER OF:

Payment of Bonus to the Workmen of Totapara Tea Estate under the Payment of Bonus Act, 1965.

 

Representation on behalf of the Management of Nuddea Plantations Limited;

 

1. That the Petitioner, M/s. Nuddea Plantations Limited, is the owner and operator of Totapara Tea Estate, P.O. Banarhat, District Jalpaiguri, engaged in the cultivation, plantations and manufacture of tea.

 

2. That the Hon’ble High Court at Calcutta, Circuit Bench at Jalpaiguri, by its Order dated 25.09.2025 in W.P.A. No. 2115 of 2025 (Nuddea Plantations Limited –vs– State of West Bengal & Ors.), has been pleased to dispose of the writ petition with the following directions;

 

(i)   The Petitioner shall pay interim bonus @ 9% by 27.09.2025, as voluntarily offered;

 

(ii)  The balance amount of bonus, as claimed by the workmen, shall be subject to conciliation under the Industrial Disputes Act, 1947 and the Payment of Bonus Act, 1965;

 

(iii)                The State Labour Commissioner / District Magistrate shall ensure that such conciliation proceedings are duly held and settled in accordance with law.

 

Photostat Server Copy of Hon’ble High Court’s Order dated 25.09.2025 (W.P.A. No. 2115/2025), is annexed herewith and marked as Annexure – “A”.

 

3. That in faithful compliance with the aforesaid order, the Management has already disbursed the interim bonus @ 9% to all eligible workmen of Totapara Tea Estate by 27.09.2025, and proof of such payment is available in the Estate records.

 

Photostat copy of such proof of payments, is annexed herewith and marked as Annexure – “B”.

 

4. That the Petitioner Company continues to face severe financial distress, having incurred consecutive losses over the past three financial years, as summarized below;

 

(i)   FY 2022–23: ₹ 2.80 crores loss

(ii)  FY 2023–24: ₹ 3.42 crores loss

(iii)                FY 2024–25: ₹ 3.69 crores loss

 

The cumulative loss exceeds ₹ 9.91 crores. The estate has suffered nearly 50% crop shortfall in 2024–25, owing to erratic rainfall, pest infestation, mandatory cessation of plucking under Tea Board directives, and sharp increase in input costs such as fuel, fertilizer, and statutory levies.

 

Photostat copy of Financial Statements are annexed herewith collectively and marked as Annexure – “C”.

 

5. That despite such accumulated losses, the Management has never defaulted in statutory payments and continues to maintain all welfare amenities and services as per the Plantation Labour Act and allied legislations.

 

6. That the Payment of Bonus Act, 1965 governs the payment of annual bonus to employees based on profits and productivity;

 

(i)   Section 10 mandates payment of a minimum bonus of 8.33% of wages, even in years of loss;

 

(ii)  Section 11 provides that the maximum bonus payable is 20% of wages and may be paid only when the establishment has allocable surplus (i.e., profits available for distribution after meeting prior charges);

 

(iii)                Accordingly, Section 11 applies only when an establishment has made profits; whereas in years of loss, the employer’s liability is limited strictly to the minimum 8.33% under Section 10 of the Payment of Bonus Act, 1965.

 

(iv) Therefore, in a loss-making establishment such as the petitioner’s, liability cannot exceed the statutory minimum of 8.33%, as the condition precedent for invoking Section 11—namely, allocable surplus—is absent.

 

7. That since the Petitioner Company has sustained continuous and verified losses, Section 11 is not attracted, and payment beyond 8.33% is not legally enforceable. Nonetheless, in obedience to the Hon’ble High Court’s order, the Management has already paid 9% bonus, which exceeds the statutory minimum.

 

8. That the advisories dated 21.08.2025 and 22.08.2025, relied upon by the workmen’s unions, are merely recommendatory and have no binding force to compel payment beyond the limits prescribed by law. This position has been recognized in the Hon’ble High Court’s order at paragraph 11.

 

Photostat copy of the advisories dated 21.08.2025 and 22.08.2025, are annexed herewith collectively and marked as Annexure – “D”.

 

9. That the Petitioner, in good faith, made representations before the Assistant Labour Commissioner and Deputy Labour Commissioner, Jalpaiguri, dated 29.08.2025, and 08.09.2025, praying for permission to pay only the statutory minimum bonus of 8.33%, as per Section 10 of the Act, due to its financial incapacity. However, such aspects is still awaiting even taken endavour by way of Letter being Memo No. 2145/DLC/JAL/2025, dated 11-09-2025.

 

Photostat copy of representations dated 29.08.2025, and 08.09.2025, and Letter being Memo No. 2145/DLC/JAL/2025, dated 11-09-2025, are annexed herewith collectively and marked as Annexure – “E”.

 

10. That compelling the Management to pay 20% bonus, despite sustained losses, would amount to economic coercion and may result in further deterioration of the plantation’s financial health, potentially jeopardizing employment and welfare of the entire workforce.

 

11. That the Petitioner Company has relied on the following Judicial precedents, in this regard;

 

1. The Management of Worth Trust v. The Secretary, Worth Trust Workers Union, 2025 Latest Case Law 320 (SC) — referred to in para 5 of the Hon’ble High Court’s order dated 25.09.2025.

The Hon’ble Supreme Court upheld that where a Tribunal had awarded minimum bonus of 8.33%, the same was lawful and binding, and that the employer’s liability does not extend beyond the statutory minimum in absence of allocable surplus.

 

Photostat copy of the said Judgment is annexed herewith and marked as Annexure – “F”.

 

2. State of T.N. v. K. Sabanayagam, (1998) 1 SCC 318 —

It was reiterated that bonus is a profit-linked payment; therefore, a loss-making unit cannot be coerced to pay beyond the statutory minimum. The Court further clarified that any administrative direction contrary to the statute is unenforceable.

 

Photostat copy of the said Judgment is annexed herewith and marked as Annexure – “G”.

 

3. Goodricke Group Limited & Ors. v. State of West Bengal & Ors., WPA 11701 of 2023 (Cal HC, order dated 01.08.2023) —

A Co-ordinate Bench of the Hon’ble Calcutta High Court, while considering a similar advisory on bonus, held that such advisories are non-binding and cannot compel uniform rates irrespective of each estate’s financial performance.

 

Photostat copy of the said Judgment is annexed herewith and marked as Annexure – “H”.

 

12. The Management therefore prays that this Hon’ble Conciliation Authority may kindly;

 

(a)  Acknowledge full compliance with the Hon’ble High Court’s interim direction by payment of 9% bonus;

 

(b)  Record the bona fide financial incapacity of the Company, supported by audited financial statements;

 

(c)  Permit closure of the present conciliation proceedings by accepting 9% as full and final settlement for 2024–25; or, alternatively;

 

(d)  Refer the matter under Section 10(1) of the Industrial Disputes Act, 1947, to the appropriate adjudicatory forum if conciliation fails.

 

13. The Management remains committed to constructive dialogue and lawful settlement, and respectfully seeks, sympathetic consideration of its genuine financial position.

 

 

Submitted by;

For Nuddea Plantations Limited

 

 

 

Debasish Sarkar
Tea Garden Manager & Authorised Signatory
Ward No. 14, Near Rabindra Bhawan, Promod Nagar Colony,
Mal, District Jalpaiguri – 735221
Mobile: 8513960407 | Email: nuddeaplantationltd@gmail.com

 

Date: 10th October, 2025
Place: Jalpaiguri

 

 

I N D E X

 

Sl. No.	Particulars’	Annexure	Pages
1	Photostat Server Copy of Hon’ble High Court’s Order dated 25.09.2025 (W.P.A. No. 2115/2025);	“A”	6 to
2	Photostat copy of such proof of payments;	“B”
3	Photostat copy of Financial Statements;	“C”
4	Photostat copy of the advisories dated 21.08.2025 and 22.08.2025;	“D”
5	Photostat copy of representations dated 29.08.2025, and 08.09.2025, and Letter being Memo No. 2145/DLC/JAL/2025, dated 11-09-2025;	“E”
6	Photostat copy of the Judgment The Management of Worth Trust v. The Secretary, Worth Trust Workers Union, 2025 Latest Case Law 320 (SC);	“F”
7	Photostat copy of the Judgment State of T.N. v. K. Sabanayagam, (1998) 1 SCC 318;	“G”
8	Photostat copy of the Judgment Goodricke Group Limited & Ors. v. State of West Bengal & Ors., WPA 11701 of 2023 (Cal HC, order dated 01.08.2023)	“H”