Bombay High Court

Bombay HC: KDMC Ordered to Implement 1996 Pay Settlement

Updated
Jan 17, 2026 7:03 PM
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Quick Summary: The Kalyan Dombivli Municipal Corporation (KDMC) lost a court case against Nandkishor Govind Sane and other workers over a pay settlement from 1996. The court decided that KDMC must follow the pay changes as agreed in the settlement.

Background of the Case

The Dispute Begins:
The case involves KDMC and Nandkishor Govind Sane along with other workers, who wanted the pay agreement from January 3, 1996, to be put into effect. This agreement was supposed to adjust their pay according to recommendations made by a government pay commission. However, KDMC did not make these changes, which led to complaints by the workers.

Legal Proceedings:
Nandkishor Govind Sane and the other workers took their complaints to the Industrial Court in Thane, which decided in their favor on April 29, 2010. KDMC tried to challenge this decision but was unsuccessful at different levels, including the High Court of Bombay.

Court's Decision

Industrial Court's Ruling:
The Industrial Court told KDMC to follow the 1996 agreement and change the pay as promised. They found KDMC guilty of not treating the workers fairly by not following the agreement.

"The respondents are hereby directed to stop the unfair treatment and to take action by implementing the Settlement, dated 03.01.1996."

High Court's Verdict:
On January 16, 2026, Justices G. S. Kulkarni and Aarti Sathe agreed with the Industrial Court's decision. They pointed out that the agreement was made during official discussions, making it mandatory for all workers, even those not in the union.

Key Arguments

KDMC's Defense:
KDMC claimed that the agreement was not mandatory for workers who were not in the union and said the complaints were made too late—12 years after the agreement. They also mentioned other agreements that they believed replaced the 1996 agreement.

Workers' Standpoint:
Nandkishor Govind Sane and the other workers argued that the agreement was still valid and had not been replaced. They said that since the agreement was made during official discussions, it applied to all workers.

Legal Implications

Binding Nature of Settlements:
The court pointed out that agreements made during official discussions are mandatory for all workers, whether they are in the union or not. This ensures fair treatment and that agreements are followed.

Limitation Argument:
The court rejected KDMC's claim about the delay in making complaints. It decided that the issue continued until KDMC made the pay changes.

Summary of the Verdict

The court’s decision emphasizes the importance of following labor agreements. KDMC must now make the pay changes as per the 1996 agreement, ensuring fairness for Nandkishor Govind Sane and the other workers.

Tags:
Employment Law
Unfair Labor Practices
Labor Agreements