High Court of Madhya Pradesh
Sheel Nagu, Anand Pathak, JJ.
NATIONAL HEALTH MISSION - APPELLANT
Versus
RAMENDRA SINGH NARWARIYA & ANR. - RESPONDENTS
W. A. Nos. 457 to 472 of 2020
Decided On : 28-04-2021
Minimum Wages Act - Employer-Employee Relationship - Act of 1948 - Summary of Acts and Sections: The court discussed the nature of the employer-employee relationship between the National Health Mission and an employee of Zigitza Health Care Ltd. under the Minimum Wages Act, 1948. The court referred to the provisions of the Contract Labour Regulation and Abolition Act 1970 and relevant case law to determine the liability for payment of wages and overtime. The court emphasized the absence of an employer-employee relationship between the appellant and the employee, and directed the payment of overtime by Zigitza Health Care Ltd. or the National Health Mission, with the right to recover the amount from Zigitza Health Care Ltd.
Fact of the Case:
The case involved a dispute over the payment of overtime to an employee of Zigitza Health Care Ltd. under the Minimum Wages Act, 1948. The National Health Mission, the appellant, argued that it did not have an employer-employee relationship with the employee and should not be held liable for the payment.
Finding of the Court:
The court found that there was no employer-employee relationship between the National Health Mission and the employee, and directed the payment of overtime by Zigitza Health Care Ltd. or the National Health Mission, with the right to recover the amount from Zigitza Health Care Ltd.
Issues: The main issue was the determination of the employer-employee relationship between the National Health Mission and the employee of Zigitza Health Care Ltd. under the Minimum Wages Act, 1948.
Ratio Decidendi: The court held that the absence of an employer-employee relationship between the National Health Mission and the employee precluded the liability for payment of overtime. The court also emphasized the right to recover the amount from Zigitza Health Care Ltd. as per the terms of the agreement/contract.
Final Decision: The court allowed all the writ appeals, modified the impugned orders, and directed the payment of overtime by Zigitza Health Care Ltd. or the National Health Mission, with the right to recover the amount from Zigitza Health Care Ltd.
ORDER ANAND PATHAK, J. – Regard being had to the similitude of controversy, all the writ appeals are heard and decided by this common order.
2. For convenience’s sake, facts as narrated in Writ Appeal No. 457/2020 are taken into consideration.
3. Instant writ appeal is preferred against the order dated 29-11-2019 passed by the learned Writ Court in M. P. No. 2677/2018 whereby petition preferred by the appellant as petitioner against the order dated 31-1-2018 passed by the Legal Authority under the Minimum Wages Act (Labour Court No. 1, Gwalior) has been dismissed.
4. Appellant/petitioner herein i.e. National Health Mission, is a body created for providing better health services and assistance to the State Authorities to outreach Medical Health Services in each and every part of the State. Under the aegis of appellant, various different programmes are being run through Public Private Partnership, particulars of which are given in the petition. These various programmes/schemes are being run with an agreement with respondent No. 2-Zigitsa Health Care Ltd. and it is the said entity which carries out the activities.
5. Respondent No. 1 is an employee of respondent No. 2 and at the relevant point of time was working as Emergency Medical Technician since 21-10-2016.
6. It appears from pleadings that respondent No. 1/employee worked for 12 hours for a certain period of time and payment was made only for 8 hours, therefore, he preferred an application under section 20 of the Minimum Wages Act, 1948 (in short “the Act of 1948”) before the Court below (Labour Court No. 1, Gwalior, as Competent Authority under the Minimum Wages Act) with the allegation that respondent No. 2 has not paid him overtime, therefore, payment be made under the Act of 1948. Employee referred the calculation of amount to the tune of Rs. 1,02,100/- with ten times penalty. Present appellant was made party as respondent No. 2 in the said case wherein appellant preferred reply, whereas present respondent No. 2- Zigitza Health Care Ltd did not prefer to file any reply.
7. It was the case of the appellant before the Court below that since no agreement exists between the appellant and respondent No. 1, therefore, no employer-employee relationship exists and he is the employee of respondent No. 2-Zigitza Health Care Ltd., therefore, present appellant is not responsible for such payment. Responsibility lies over respondent No. 2. Appellant referred the scheme and Request for Proposal (RFP) executed between the parties and categorically submitted in its reply that responsibility lies over present respondent No. 2.
8. Evidence was led in which employee/respondent No. 1 appeared in the witness-box and was cross-examined by the present appellant as well as respondent No. 2. After considering the rival submissions and evidence on record, Court below passed the impugned order dated 31-1-2018 whereby employee was found to be entitled for payment of overtime to the tune of Rs. 1,02,100/- with Rs. 10,000/- as penalty. It was observed by the Labour Court that relationship of principal employee appears to exist between respondent No. 1 and appellant.
9. Against the said order, appellant preferred writ petition with the submissions that no such employer-employee relationship exists between the two and Court below erred in fastening the liability over the appellant. Learned Writ Court dismissed the writ petition preferred by the appellant, therefore, being aggrieved by the same, appellant/petitioner has preferred this appeal.
10. Learned counsel appearing for the appellant stressed over the fact that employee was appointed by respondent No. 2 and not by the appellant for carrying out operations under National Health Mission like 108 Ambulance, Janni Suraksha Yojna etc. and it is the sweet will of the contractor to depute any employee under its employment for this purpose and being service provider, it was his duty to take care of his employees and indemnify them accordingly, therefore,
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M/s Ziqitza Health Care Ltd. vs. Rakesh Singh and others
The central legal point established in the judgment is the determination of the employer-employee relationship under the Minimum Wages Act, 1948, and the liability for payment of wages and overtime.
Advocates appeared :For the Appellant : N. K. Gupta, Ravi Shankar Gupta, S. D. Bhadoriya For the Respondent : Sankalp Sharma, G. P. Chaurasiya
it is difficult to extend minimum time scale to the petitioners as they were not engaged by respondent Nos. 4 to 11 either on contract basis or outsourcing basis.
The court affirmed that natural justice principles apply even in contractual employment but can be flexible; proper opportunity must be given, but not always in the traditional sense.
Petitioners are entitled for minimum time scale of pay and they are bound to serve during regular office hours of an employee on par with regular employees of the same cadre. Therefore, the petitione....
Point of law: Labour Law – arrears of pay – Court need not advert to the submissions made on behalf of the management as the same would tantamount to adjudication of the controversy on merits.
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