Bombay High Court

Bombay HC: KDMC Must Honor 1996 Pay Agreement with Workers

Updated
Jan 17, 2026 10:53 PM
bombay-hc-kdmc-must-honor-1996-pay-agreement-with-workers

Quick Summary: The Bombay High Court decided that the Kalyan Dombivli Municipal Corporation (KDMC) must change their workers' pay as promised in a 1996 agreement. This decision was confirmed by Judges G. S. Kulkarni and Aarti Sathe on January 16, 2026.

Background of the Case

The Kalyan Dombivli Municipal Corporation (KDMC) was in a legal fight with several workers over an agreement from January 3, 1996. The workers, represented by two unions, said that KDMC failed to update their pay as promised in the agreement, which was based on the 5th Pay Commission's suggestions.

The Workers' Complaint

The workers, who weren't directly part of the original agreement, filed complaints in 2008. They said the agreement was still valid and required KDMC to adjust their pay scales according to the 5th Pay Commission.

"The agreement was legal, valid, and still in effect, and it had been completely accepted by the KDMC," the workers argued.

KDMC's Side

KDMC argued that the agreement was between them and the unions, not the individual workers. They also claimed the agreement was no longer effective because of later reports and decisions. Additionally, they said the complaints were filed too late, 12 years after the agreement.

Industrial Court's Decision

On April 29, 2010, the Industrial Court sided with the workers, ordering KDMC to follow the agreement within 60 days. KDMC's appeal to the High Court was turned down on July 18, 2011, supporting the Industrial Court's decision.

High Court's Ruling

The High Court, led by Judges G. S. Kulkarni and Aarti Sathe, confirmed that the agreement was made during discussions to solve the issue, making it apply to all workers, not just those in the union.

"An agreement during discussions to solve an issue applies not only to those who signed it but also to everyone involved in the dispute," stated the court.

Time Limit Argument Rejected

The court also dismissed KDMC's argument about the time limit, noting that the workers filed their complaints within the allowed time, since KDMC had not yet changed the pay.

Summary of the Verdict

The High Court's decision requires KDMC to change the workers' pay according to the 1996 agreement, highlighting the importance of keeping promises made during settlement discussions. This ruling is a big win for the workers, ensuring they get fair pay based on what was agreed upon.

"Disclaimer: The names used in this report are fictitious and have been added for privacy reasons."

Tags:
Employment Law
Labor Agreements
Fair Hearing