Dattatray Vitthalrao Nagthai And Others vs. The State Of Maharashtra And Others

Facts

This judgment consolidates multiple writ petitions filed by contractual ambulance drivers and others against the State of Maharashtra and its authorities. The petitioners, engaged through contractors or Zilla Parishads, claimed non-payment of salaries for periods ranging from 12 to 15 months. The core issue revolves around the payment of salaries and the continuation of their contractual employment. The State, through various communications, acknowledged the situation and proposed a framework for payment, including GST implications. The Court was presented with the challenge of ensuring timely and adequate payment to these contractual employees.

Held

The Court directed that the Petitioners shall be paid salaries at the minimum pay scale of the lowest grade applicable to regular employees holding the same ambulance driver post, until further orders. Their services were also protected from termination without leave of the Court, specifically concerning their contractual employment. The Court noted that the Zilla Parishads would need to intimate the quantum of unpaid salaries to the Joint Director of Health Services, Mumbai, within 10 days. The Directorate of Health Services was expected to initiate steps to ensure monthly salaries are paid from March 2023. The Court also directed that contractors' future bills would not be cleared without court leave. Payments of arrears were to be made by the Zilla Parishad or Contractor, either in lump-sum or in twelve equated monthly installments. The Court also clarified that the Principal Employer would directly make payments to the drivers via bank transfers, which would not establish an employer-employee relationship with the Zilla Parishad or Principal Employer, nor would it render the contract sham. The judgment also provided recourse for terminated drivers to raise industrial disputes. Finally, the Court stated that its conclusions would not prevent the State Government from framing a scheme under the judgment in Secretary, State of Karnataka v/s Umadevi, if desired.

Key Issues

1. Whether the Petitioners, as contractual ambulance drivers, are entitled to receive salaries at par with the minimum pay scale of regular employees holding similar posts, and whether their services can be terminated without leave of the Court (Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970, and principles of natural justice). Petitioner's arguments: The petitioners argued that they have been working for extended periods and are entitled to be paid salaries equivalent to the lowest grade of regular employees in the same post. They also contended that their services should not be terminated arbitrarily, especially given the non-payment of dues. Revenue/State's arguments: The State acknowledged the issue of non-payment and indicated a willingness to facilitate payments, including the GST component, through Zilla Parishads. They proposed a mechanism for assessing and disbursing salaries. The State also highlighted the need for a structured approach to address the financial implications and contractual arrangements.