Bombay High Court

Supreme Court: KDMC Must Honor 1996 Worker Pay Agreement

Updated
Jan 17, 2026 7:03 PM
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Summary: After a long legal fight, the Kalyan Dombivli Municipal Corporation (KDMC) has been told to follow through with a 1996 agreement, making sure its workers get fair pay.

Background of the Case

On January 3, 1996, KDMC and two workers' unions, Municipal Mazdoor Union Maharashtra and Akhil Bharatiya Safai Mazdoor Congress, reached an agreement. This deal was part of discussions to resolve disputes and included following the 5th Pay Commission's recommendations. However, the workers said KDMC did not keep its promise.

The Workers' Complaint

The workers, who were employed by KDMC, filed complaints under a law meant to protect workers' rights in Maharashtra. They wanted the 1996 agreement to be put into action so their pay would be updated according to the 5th Pay Commission.

"The agreement was legal, valid, and still in effect," argued the workers, stressing that KDMC had to follow it.

KDMC's Argument

KDMC argued against the complaints, saying the agreement was only between the corporation and the unions, not the individual workers. They also said that later reports and decisions had replaced the 1996 agreement. Additionally, KDMC claimed the complaints were too late, as they were filed 12 years after the agreement.

Industrial Court's Decision

On April 29, 2010, the Industrial Court decided in favor of the workers, telling KDMC to follow the 1996 agreement. The court found KDMC guilty of unfair practices for not following the agreement.

The court ordered KDMC to "stop and not continue the unfair practices."

High Court's Ruling

KDMC's appeal was rejected by the High Court on July 18, 2011. Judges G. S. Kulkarni and Aarti Sathe supported the Industrial Court's decision, emphasizing that the agreement was binding since it was reached during dispute resolution discussions.

Supreme Court's Involvement

KDMC took the case to the Supreme Court, which told them to ask the High Court to look at it again. After more legal steps, the High Court confirmed its decision on January 16, 2026, rejecting KDMC's appeals.

Summary of the Verdict

The final decision from the court requires KDMC to follow the 1996 agreement and pay the updated wages. This ruling is a big win for the workers, making sure they get the benefits they were promised years ago.

"The appeals are accordingly dismissed," concluded the High Court, marking the end of a long legal journey for KDMC workers.

Tags:
Workers' Rights
Unfair Labor Practices
Employment Law