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2026 Supreme(Bom) 20

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G.S. KULKARNI, AARTI SATHE, JJ.
Kalyan Dombivli Municipal Corporation and Another – Appellants
Versus
Nandkishor Govind Sane and Others – Respondents
Letters Patent Appeal Nos. 321, 322, 323, 324, 325, 326 of 2011, Writ Petition Nos. 1787, 1788, 1789, 1790, 1791, 1793 of 2011, Civil Application (L.) Nos. 384, 385, 386, 387, 388, 389 of 2011
Decided On : 16-01-2026

Advocates Appeared:
For the Appellants : Sudhir Talsania, A.S. Rao
For the Respondent: Yogendra M. Pendse

Settlements reached in conciliation proceedings bind all employees, not limited to union members, ensuring rights to unimplemented agreements.

Headnote:(A) Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Section 28 - Industrial Disputes Act, 1947 - Section 18 - Settlement agreement - Issue of entitlements of complainants under a settlement not implemented; both the Industrial Court and Single Judge found settlement binding on all workers, including non-member employees - KDMC's plea of limitation rejected as complaints were timely given ongoing cause of action related to lawful settlements - No conflict with binding nature of settlements reached in conciliation proceedings. (Paras 1-20)

Facts of the case:
The complainants, employees of KDMC but not members of the unions, filed complaints under MRTU & PULP Act for unimplemented wage revisions per the 1996 settlement. KDMC contested, arguing the complainants lacked standing and cited a limitation period.

Findings of Court:
The Industrial Court ordered KDMC to implement the settlement; KDMC's arguments on both grounds rejected by the Single Judge affirming the settlement's binding nature despite non-membership of complainants.

Issues: Whether the complainants were entitled to benefits from a settlement they were not party to, and applicability of the limitations period on the complaints.

Ratio Decidendi: Settlements reached during conciliation proceedings are binding on all employees, regardless of union membership; ongoing entitlements under the settlement justify the complaints' delay.

Result: Appeals dismissed.

Table of Content
1. challenge to the impugned order about settlement implementation. (Para 1 , 2 , 3)
2. complaints filed under mrtu & pulp act regarding wage revision. (Para 4 , 5 , 6)
3. analysis of legal provisions about binding settlements. (Para 7 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
4. arguments regarding maintainability and limitation on complaints. (Para 10 , 11)
5. court's rejection of appeal and confirmation of lower court's ruling. (Para 19 , 20)

JUDGMENT :

G.S. KULKARNI, J.

1. These Letters Patent Appeals challenge the judgment and order dated 18 July, 2011 passed by the learned Single Judge on a batch of Writ Petitions filed by the appellant – Kalyan Dombivli Municipal Corporation (for short “KDMC”). By the impugned judgment, the learned Single Judge while dismissing the Writ Petitions filed by the KDMC confirmed the orders dated 29 April, 2010 passed by the learned Member, Industrial Court, Thane allowing the complaints filed by the respondent-workmen. It is thus the concurrent findings of both such forums are being assailed by the KDMC.

2. The facts lie in a narrow compass:-

The respondents are the original complainants, being “workmen” (hereinafter referred to as “the complainants”) employed with the KDMC. The complainants filed applications/complaints under Section 28 read with Items 5 and 9 of Schedule IV to the MAHARASHTRA RECOGNITION OF TRADE UNIONS AND PREVENTION OF UNFAIR LABOUR PRACTICES ACT , 1971 (for short “the MRTU & PULP” Act), seeking directions to the KDMC to implement the settlement agreement dated 3 January, 1996 arrived between the KDMC and the two Workers Unions, namely, Municipal Mazdoor Union Maharashtra and Akhil Bharatiya Safai Mazdoor Congress, and more particularly what was provided for in Clause (1) of the said settlement agreement, which primarily pertained to the implementation of the 5th Pay Commission recommendations. The relevant extract of the settlement agreement is required to be noted, which reads thus:

(Translation of a photocopy of a Marked portion, typewritten in Marathi)

AGREEMENT

Date : 3rd January, 1996.

Agreement entered into as per Section 18 (1) of the Industrial Disputes Act, 1947 and Rule 62 of the Industrial Disputes Mumbai Rules, 1947.

1) Kalyan Municipal Corporation, Kalyan [Hereinafter, shall be referred to as Municipal Corporation]

2) A] Municipal Mazdoor Union, Maharashtra, Dhobiali, Tembhinaka, Thane.

B] Akhil Bharatiya Safai Mazdoor Congress, Ashirwad, Joshi Baug, Kalyan.

(Hereinafter, shall be referred to as Labour Unions]

The Commissioner Shri T. Chandrashekhar, Deputy Commissioner Shri G.C. Mangale and the Labour Officer Shri V.N. Hanmane on behalf of the Municipal Corporation whereas Shri Madhu Joshi and Shri Charansingh Tank on behalf of the Labour Union took part in the discussions.

BACKGROUND OF THE AGREEMENT

Municipal Mazdoor Union, Maharashtra, Akhil Bharatiya Safai Mazdoor Congress had served Notice on the Municipal Corporation for going on strike on the dates 18.12.1995 and 21.12.1995 respectively for their 16 and 20 demands respectively. On the date 30.12.1995, both the Labour Unions, in order to get their demands granted, had jointly staged One Day’s Symbolic Strike and had organized a March to the Municipal Corporation. The Delegation of the said March had held detailed discussion with the Commissioner of the Municipal Corporation. During the course of this discussion, the Municipal Commissioner accepted some demands of the Labour Unions and as regards other demands, assured them to hold a discussion for the same and to take a decision in respect thereof at the earliest.

In the meantime, the Assistant Labour Commissioner and Conciliation Officer, Kalyan, had called both the Parties on the date 29.12.1995 for preliminary discussion. Both the Parties met the Conciliation Officer and informed that discussion was going on between both the Parties regarding the demands of the Labourers. As the services of the Municipal Corporation come under the Emergency Services, the

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