Bramhanand Dharma Goradwar And Others vs. The State Of Maharashtra Through Its Secretary And Others

Facts

This judgment consolidates multiple writ petitions and contempt petitions concerning contractual ambulance drivers engaged through Zilla Parishads in Maharashtra. The petitioners, employed as contractual ambulance drivers, allege non-payment of salaries for extended periods, ranging from 12 to 15 months. The State of Maharashtra, through various communications, acknowledges the issue and proposes a mechanism for payment. The core of the dispute revolves around the payment of salaries and the contractual terms of employment for these drivers, who were engaged through contractors but are seeking direct payment from the principal employers (Zilla Parishads). The judgment also touches upon the potential GST implications related to these payments.

Held

The Court directed that the contractual ambulance drivers shall be paid minimum pay scales at the lowest grade applicable to regular employees holding the same post, until further orders. Their services shall not be terminated without leave of the Court, solely in relation to their contractual employment. The Zilla Parishads are required to intimate the quantum of unpaid salaries to the Joint Director of Health Services, Mumbai, within 10 days, using a specified chart. The Directorate of Health Services is expected to initiate steps to ensure monthly salaries are paid from March 2023. The Court also directed that the Zilla Parishads or contractors must make assessments of arrears from the filing dates of the writ petitions and pay them, if not in lump sum, then in twelve equated monthly installments. The Court further directed the Principal Employer (Zilla Parishad) to directly make payments to the contractual ambulance drivers via bank transactions, which would not be a ground for alleging a sham contract or establishing an employer-employee relationship with the Zilla Parishad. The judgment also noted that if any drivers were terminated or disengaged, they could raise an industrial dispute under the Industrial Disputes Act, 1947. The Court clarified that its conclusions would not prevent the State Government from framing a scheme in line with Supreme Court judgments. Finally, the Court directed that the Zilla Parishads or State Government would adjust these direct payments against the bills of the contractors.

Key Issues

1. Whether the contractual ambulance drivers are entitled to receive their salaries directly from the Zilla Parishads, bypassing the contractors, and if so, what is the mechanism for such payment, considering the existing contractual arrangements and potential GST implications? (Mixed question of law and fact, concerning contractual law, labour law, and GST provisions). 2. Whether the services of these contractual ambulance drivers can be terminated without the leave of the Court, and if so, under what circumstances? (Question of law, concerning employment law and court directives). Petitioner's arguments (implied): The petitioners argue for direct payment of salaries by the Zilla Parishads due to non-payment by contractors, seeking to maintain their employment and receive due wages. They rely on principles of natural justice and previous pronouncements regarding contractual employment and wage payments. Revenue/State's arguments (implied): The State, through its communications and submissions, acknowledges the salary arrears and proposes a framework for payment, including the involvement of Zilla Parishads. They have provided formats for detailing salary requirements and have indicated a willingness to ensure payments are made, while also considering the GST component. They rely on their internal communications and directives to address the issue.