Nimba Shriram Patil And Another vs. The Union Of INDIA Through Its Secretary And Others

Facts

This judgment consolidates numerous 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, claimed non-payment of wages 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 these drivers, including GST, and to state the funds required for monthly payments. The petitions were filed against the State of Maharashtra and other respondent authorities. The core issue revolves around the payment of salaries to these contractual employees and the role of Zilla Parishads and contractors in this process.

Held

The Court directed that the contractual ambulance drivers (Petitioners) shall be paid salaries at par with the minimum pay scale of regular employees holding the same post until further orders. Their services shall not be terminated without leave of the Court, solely based on their contractual employment. The Court acknowledged the non-payment of salaries for 12 to 15 months and, referencing the State's communication dated January 24, 2023, directed the Zilla Parishads to intimate the quantum of unpaid salaries to the Joint Director of Health Services within ten days. The Directorate of Health Services was expected to initiate steps for monthly salary payments from March 2023. The Court also directed that the Zilla Parishads or contractors must assess arrears and make payments, if not in lump sum, then in twelve equated monthly installments. The Court clarified that direct payment by the Principal Employer would not establish an employer-employee relationship for the purpose of alleging a sham contract. The Court also noted that its conclusions in Dhiraj Sudhakarrao Wankhede would not prevent the State from framing a scheme under the judgment in Secretary, State of Karnataka v/s Umadevi, if desired. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the Zilla Parishads, as 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 legal basis for such an obligation under the Goods and Services Tax (GST) regime? Petitioner's arguments: The petitioners contended that they have not been paid salaries for extended periods and that the Zilla Parishads, as principal employers, should be directed to make these payments directly. They relied on the communication dated January 24, 2023, from the Directorate of Health Services, which indicated a move towards direct payment. They argued that the GST component should also be considered in the payment of salaries. Revenue/State's arguments: The State, through its communication, acknowledged the issue and sought details for direct payment. The judgment does not explicitly record arguments from the revenue or State regarding the GST aspect or the legal basis for direct payment beyond the administrative direction. However, the court's directions imply an acceptance of the need for direct payment by the principal employer.