Bhaiya Dinkar Patil vs. The State Of Maharashtra And Others

Facts

The petitioners are contractual ambulance drivers engaged through contractors by Zilla Parishads. They have not been paid salaries for periods ranging from 12 to 15 months. The State of Maharashtra, through the Joint Director of Health Services, issued a communication on January 24, 2023, requesting Zilla Parishads to submit details of salaries payable, including GST, and the quantum of funds required for monthly payments. The Zilla Parishads were asked to fill a specific format/chart. The Court considered the issue of non-payment of salaries and the contractual nature of employment, with multiple writ petitions and contempt petitions filed concerning these issues.

Held

The Court directed that the minimum pay scale at the lowest grade in the regular pay scale extended to regular employees holding the same ambulance driver post shall be paid to the petitioners until further orders. Their services shall not be terminated without leave of the Court, solely in relation to their contractual employment. The concerned Zilla Parishads are to intimate the Joint Director of Health Services, Mumbai, regarding the quantum of unpaid salaries within 10 days, using the chart annexed to the communication dated January 24, 2023. The Directorate of Health Services is expected to initiate immediate steps to ensure monthly salaries are paid from March 2023. The Court also directed that the Principal Employer (Zilla Parishad or Contractor) must make payments of arrears, if not in lump sum, then in twelve equated monthly installments. The service conditions applicable to the petitioners would be maintained as long as the scheme lasts. Contractual employees shall not be replaced by new contractual employees, except in cases of misconduct, misdemeanor, death, or other valid reasons, with preference to be given to previously engaged contractual drivers if replacement is necessary. The Principal Employer is directed to directly make payments to the contractual ambulance drivers via bank transactions to their salary accounts. This direct payment will not be a ground for alleging a sham contract or establishing an employer-employee relationship with the Zilla Parishad or Principal Employer. Petitioners terminated or disengaged are at liberty to raise an industrial dispute under the Industrial Disputes Act, 1947. The Court clarified that its conclusions in Dhiraj Sudhakarrao Wankhede (supra) would not impede the State Government from framing a scheme under the judgment in Secretary, State of Karnataka v/s Umadevi (supra). The Principal Employer can adjust these direct payments against contractors' bills and service charges.

Key Issues

1. Whether the contractual ambulance drivers, engaged through contractors by Zilla Parishads, are entitled to receive their salaries directly from the Principal Employer (Zilla Parishad) in light of non-payment by contractors, and what is the appropriate mechanism for such payment? Petitioner's arguments: The petitioners argued that they have not been paid salaries for extended periods, necessitating direct intervention for payment. They relied on the principle that employers should not benefit from the non-payment of wages to workers, citing Ashok Dhondiba Meher (supra). Revenue/State's arguments: The State of Maharashtra, through its communications, indicated a process for Zilla Parishads to assess and report the quantum of unpaid salaries and required funds. The State also provided a format for detailing GST implications. The judgment does not explicitly record arguments from the State regarding the direct payment mechanism, but rather outlines the process initiated by the State's communication.