Kailash Eknath Telange And Others vs. The Union Of INDIA Through Its Secretary And Others

Facts

Multiple writ petitions were filed by contractual ambulance drivers challenging the termination of their services and non-payment of salaries for periods ranging from 12 to 15 months. The petitioners were engaged through contractors by Zilla Parishads. The State of Maharashtra, through the Directorate of Health Services, issued a communication on January 24, 2023, directing Zilla Parishads to submit details of salaries payable to contractual drivers, including GST, and to state the funds required for direct payment. The Court noted that the contractors had deployed these drivers and their contracts were terminated. The Zilla Parishads were directed to fill in a chart detailing unpaid salaries and submit it to the Joint Director of Health Services within 10 days. The Directorate of Health Services was expected to initiate steps for payment of salaries from March 2023.

Held

The Court held that the Zilla Parishads, as the principal employers, should directly make payments to the contractual ambulance drivers via bank transactions, as per the principle laid down in Ashok Dhondiba Meher (supra). This direct payment would not be grounds for alleging a sham contract or establishing an employer-employee relationship with the Zilla Parishad or Principal Employer. The Court directed that the minimum pay scale at the lowest grade of regular employees holding the same post should be paid to the petitioners until further orders. Their services were also protected from termination without leave of the Court, solely in relation to their contractual employment. The Court further directed that the Zilla Parishads should intimate the quantum of unpaid salaries to the Joint Director of Health Services within 10 days, and the Directorate of Health Services should ensure monthly salaries are paid from March 2023. Arrears of payments 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 its directions would not prevent the State Government from framing a scheme under the judgment in Secretary, State of Karnataka v/s Umadevi (supra).

Key Issues

1. Whether the Zilla Parishads, as the principal employers, are obligated to directly pay the salaries of the contractual ambulance drivers, especially when contractors have failed to do so, and what is the procedural mechanism for such payments, considering the communication dated January 24, 2023? (This issue concerns the interpretation and application of principles related to employer obligations and contractual arrangements in the context of public service delivery). 2. Whether the services of the contractual ambulance drivers can be terminated without the leave of the Court, and what interim relief should be granted to them pending the final disposal of their writ petitions, particularly concerning salary payments and job security? Petitioner's arguments: The petitioners argued for direct payment of salaries by the principal employer (Zilla Parishad) due to non-payment by contractors and sought protection against termination without court leave. They relied on the State's communication indicating a shift towards direct payment and the principle of ensuring essential services are maintained. Revenue/State's arguments: The State acknowledged the issue of non-payment and issued a communication to facilitate direct payment. The State's stance, as reflected in the communication and the Court's subsequent directions, was to ensure drivers receive their salaries, potentially by adjusting contractor bills and service charges.