MANAGEMENT OR CONTROL OF TEA UNDERTAKINGS OR TEA UNITS BY THE CENTRAL GOVERNMENT IN CERTAIN CIRCUMSTANCESCentral

Section 16M of The Tea Act, 1953

1[16M. Bar of suits and other proceedings in relation to the tea undertakings or tea units.--No suit or other legal proceedings shall be instituted or continued against a tea undertaking or tea unit in respect of which an order has been made under section 16D or section 16E, except with the previous permission of the Central Government or of any officer authorised by that Government in this behalf.]

Summary

Section 16M prevents any person from starting or continuing a court case against a tea unit that the government has taken over.
This legal restriction applies when the government has issued a formal order to manage the business under Section 16D or Section 16E.
No legal proceedings can move forward unless the Central Government gives its permission before the case starts or continues.
Permission to proceed with a lawsuit can also be granted by a specific officer who has been authorized by the government for this task.

Practical examples

1On June 1, 2025, the Central Government takes over Blue Mountain Tea under Section 16D because they have not paid their workers. A local equipment supplier named Mr. Gupta wants to sue them for 10,000 rupees. Because of Section 16M, the court will not accept his case unless he first gets written permission from the Central Government.

2River Side Tea Estate is already being sued by a contractor in January 2026. In February 2026, the government takes over management under Section 16E because the owners recklessly spent all the company's funds. The ongoing court case must stop immediately, and the contractor must ask an authorized government officer for permission to continue the lawsuit.

FAQ

1. Can I sue a tea garden that the Central Government has taken control of under The Tea Act, 1953?

According to Section 16M of the 1953 Act, you cannot start or continue any legal case against such a unit without first getting permission from the Central Government or an authorized officer.

2. What happens to a pending court case if the tea unit involved is taken over under Section 16E of The Tea Act, 1953?

Under Section 16M of the tea law, the lawsuit cannot be continued unless the person suing obtains previous permission from the Central Government or a chosen officer.

3. Who has the authority to allow a lawsuit against a managed tea undertaking under Section 16M of The Tea Act, 1953?

Section 16M of the Act states that the Central Government or any officer they have authorized in this behalf can give the required permission.

Test yourself

Q1.Under Section 16M of The Tea Act, 1953, what must happen before someone can continue a legal proceeding against a tea unit taken over under Section 16D?

Q2.Which of the following government orders triggers the bar on suits described in Section 16M of The Tea Act, 1953?

Q3.If the Central Government takes over a tea unit under Section 16E of The Tea Act, 1953, because it was closed for three months, what is the status of new lawsuits against that unit under Section 16M?

Q4.According to Section 16M of The Tea Act, 1953, who is allowed to authorize a person to start a legal proceeding against a managed tea unit?

16LLPreviousSection 16LL Debts incurred and investments made by the authorised person to have priority.16NNextSection 16N Rules made under Act 65 of 1951 to apply.

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