Vikas Popat Kashid vs. The State Of Maharashtra And Others

Facts

Multiple writ petitions were filed by contractual ambulance drivers challenging the non-payment of their salaries for periods ranging from 12 to 15 months. The petitioners were engaged through contractors by Zilla Parishads. The State of Maharashtra, through the Joint Director of Health Services, had issued communications regarding the payment of salaries and the inclusion of GST. The Zilla Parishads were asked to provide details of funds required for monthly salaries. The petitions also involved issues related to the termination of services and the non-payment of bills by contractors. The Court considered communications from the Joint Director of Health Services and the Zilla Parishads' responsibilities in processing salary payments.

Held

The Court directed that the contractual ambulance drivers shall be paid salaries at the minimum pay scale of the lowest grade in the regular pay scale extended to regular employees holding the same post, until further orders. Their services were also protected against termination without the leave of the Court, solely in relation to their contractual employment. The Court noted that the Zilla Parishads would intimate the Joint Director of Health Services, Mumbai, regarding the quantum of unpaid salaries within ten days, using the chart annexed to the communication dated 24.01.2023. The Directorate of Health Services was expected to initiate immediate steps to ensure monthly salaries are paid from March 2023. The Court also directed that the Zilla Parishads or the contractors would assess arrears from the filing dates of the writ petitions and make payments, either lump-sum or in twelve equated monthly installments. The Court held that the Principal Employer (Zilla Parishad) should directly make payments to the contractual ambulance drivers via bank transfers, which would not be a ground for alleging a sham contract or establishing an employer-employee relationship with the Zilla Parishad. The Court also clarified that 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 drivers if replacements are necessary. The Court expressly left undecided the broader issue of regularization of contractual employees, stating that the State Government could frame a scheme in view of the judgment in Secretary, State of Karnataka v/s Umadevi (supra) if desired.

Key Issues

1. Whether the Zilla Parishads, as principal employers, are obligated to directly pay the salaries of contractual ambulance drivers, considering the non-payment by contractors? (This issue pertains to the interpretation of employer responsibilities and contractual obligations under the Goods and Services Tax regime and general employment law). 2. Whether the contractual employees are entitled to be paid at least the minimum pay scale of regular employees holding the same post until further orders? (This issue relates to the terms of contractual employment and fair remuneration). 3. Whether the services of these contractual employees can be terminated without the leave of the Court, particularly in light of their prolonged non-payment? (This issue concerns the protection of contractual employment against arbitrary termination). Petitioner's arguments: The petitioners argued that due to the non-payment of salaries by contractors, the Zilla Parishads, as the ultimate beneficiaries of their services, should be directed to make direct payments. They relied on the principle of ensuring fair wages and the Supreme Court's pronouncements on contractual employment and payment of dues. They also contended that their services should not be terminated without due process and court intervention, especially given the salary arrears. Revenue/State's arguments: The State and Zilla Parishads acknowledged the issue of non-payment and the need for a resolution. Their arguments focused on the procedural aspects of ensuring payments, including the requirement for Zilla Parishads to provide details of required funds and the Directorate of Health Services to initiate steps for timely salary disbursement. They also indicated their willingness to comply with court directions regarding payment mechanisms and the inclusion of GST.