Quick Summary: The Bombay High Court dismissed appeals by the Kalyan Dombivli Municipal Corporation (KDMC) against implementing a pay settlement from 1996. The court ruled that KDMC must honor the agreement made with workers' unions, despite KDMC's objections.
Who’s Involved?
The Kalyan Dombivli Municipal Corporation (KDMC) and several workers, including Shakuntala Dattu Chaudhari, were involved in a disagreement over a settlement agreement from January 3, 1996.
What Happened?
The workers argued that KDMC failed to update their wages according to the settlement, which included recommendations from the 5th Pay Commission. KDMC claimed the settlement was outdated and not applicable to the workers.
Initial Decisions
On April 29, 2010, the Industrial Court in Thane ruled in favor of the workers, stating KDMC acted unfairly by not following the settlement.
KDMC’s Arguments
KDMC argued that the settlement was only between them and the unions, not individual workers. They also said that the complaints were filed too late, as they were submitted 12 years after the settlement.
Judges Involved
The case was reviewed by Judges G. S. Kulkarni and Aarti Sathe.
Key Judgment Points
- The court upheld the Industrial Court's decision, emphasizing that the settlement was made during discussions to resolve disputes, making it binding on all workers, not just union members.
- The court rejected KDMC's argument about the complaints being too late, noting the settlement was still valid and had not been followed.
Quote from the Judgment
"The settlement dated 3 January, 1996 was arrived at in the course of the conciliation proceedings... it is binding on KDMC."
Outcome
The appeals by KDMC were dismissed on January 16, 2026. The court ordered KDMC to implement the settlement and pay the revised wages to the workers.
Impact
This decision reinforces the binding nature of settlements made during dispute resolution discussions and supports workers' rights to enforce such agreements, even years later.
