Ganesh Nathuram Khodpe vs. The State Of Maharashtra And Others

Facts

This judgment consolidates multiple writ petitions filed by ambulance drivers and their unions challenging the non-payment of salaries by contractors and Zilla Parishads. The petitioners, engaged as contractual ambulance drivers, claim non-payment of salaries for periods ranging from 12 to 15 months. 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 the quantum of funds required for monthly payments. The Court noted that contractors had deployed these drivers, and their contracts were subsequently terminated. The Zilla Parishads were directed to submit details of unpaid salaries within 10 days.

Held

The Court directed that the minimum pay scale at the lowest grade applicable to regular employees holding the same post should be paid to the petitioners until further orders. Their services were also protected from termination without the Court's leave, solely based on their contractual employment. The Court acknowledged the communication from the State of Maharashtra dated January 24, 2023, and directed the concerned Zilla Parishads to intimate the Joint Director of Health Services, Mumbai, about the quantum of unpaid salaries 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 the Zilla Parishad or Contractor must assess and pay arrears of payments, at least in twelve equated monthly installments. The Court clarified that direct payment by the Principal Employer would not establish an employer-employee relationship between the Zilla Parishad and the drivers, nor would it render the contract sham. The judgment also allowed contractual employees to raise industrial disputes if terminated or disengaged.

Key Issues

1. Whether the Zilla Parishads, as the principal employers, are obligated to directly pay the salaries of contractual ambulance drivers, especially when contractors have failed to do so, and what is the implication of such direct payment on the employer-employee relationship? (Section 16 of the Industrial Disputes Act, 1947, and principles of contract law). 2. What relief can be granted to the contractual ambulance drivers who have not been paid their salaries for extended periods, considering the termination of their contracts and the alleged non-compliance by contractors? Petitioner's Arguments: The petitioners argued for the direct payment of their salaries by the principal employer (Zilla Parishad) to ensure they receive their dues, given the contractors' failure to pay. They sought protection against termination of services and sought payment of arrears. Revenue/State's Arguments: The State of Maharashtra, through its communication dated January 24, 2023, indicated a willingness to address the salary payment issue by directing Zilla Parishads to provide details of unpaid salaries and required funds. The State also acknowledged the GST component to be levied.