In a landmark decision bringing closure to a decades-long struggle, the Gujarat High Court has paved the way for over 3,200 former textile mill workers in Ahmedabad to finally receive their long-pending dues. The workers of the defunct Aryoday Spinning & Weaving Manufacturing Mills Co Ltd, who lost their jobs in 1989, are set to be paid Rs 27.87 crore along with 4% interest, concluding a painful 36-year wait.
A Long Legal Journey Reaches Its End
The litigation saga for this sick textile unit began as far back as 1983, with the mill officially being wound up in 1989. The path to resolution was arduous, involving decades of court battles and ten separate auction advertisements before the mill's prime land could be sold. The breakthrough came just two months ago, in October, when a massive 58,000 square yard plot in Asarwa was auctioned for Rs 82 crore.
This sale provided the necessary funds for the official liquidator to settle outstanding claims. Justice Mauna Bhatt of the Gujarat High Court has now issued clear directives for the disbursement of these funds. From the realized amount, Rs 27.68 crore is to be paid directly to the workers, while Rs 9.33 crore will go to the State Bank of India as a secured creditor. An additional Rs 2.12 crore is allocated for the Employee Provident Fund Organisation.
The Challenge of Disbursing Funds After Decades
The court's order marks a significant victory, but the process of actually getting the money to the rightful recipients comes with its own complexities. According to advocate Dhimant Vasavada, representing the Textile Labour Association (TLA), a sobering reality is that approximately 60% of the mill's original workforce is no longer alive. This means the primary task now shifts to identifying and verifying legal heirs.
The High Court has laid down a meticulous procedure for this. Legal heirs must furnish relevant documents, indemnity bonds, and undertakings. They must also agree to be responsible for any future disputes and refund the amount if necessary. To streamline payments to living workers, the court has directed the TLA to prepare a master payment register. The official liquidator will then transfer funds directly into the workers' bank accounts.
A Precedent for Other Closed Mills
This case sets an important precedent in Ahmedabad's industrial history. Of the 36 textile mills that shut down over thirty years ago, the Aryoday Mill becomes the 14th where workers will receive their full and final dues. Over the years, the liquidator had made some interim payments by selling the company's stock, plants, and machinery, disbursing Rs 1.81 crore to the workers earlier.
Consequently, after adjusting for this prior payment, the workers will now receive the remaining principal amount of Rs 25.87 crore. The accrued interest will be paid in a second phase, after other dues are settled from the remaining funds. For the former workers and families of the Aryoday Mill, this judicial order finally delivers a measure of justice and financial closure after a lifetime of uncertainty.
