EXPORT PROCESSING ZONES AUTHORITY, KARACHI Versus SINDH LABOUR APPELLATE TRIBUNAL, KARACHI

1. IMAM ALI G. KAZI, J.‑‑ The Export Processing Zones Authority, Karachi by office order bearing No. Estt‑5‑013, dated 23rd December, 1982 appointed Mohammad Akram, the respondent herein, as Security Guard in Pay Scale S‑I with usual allowances with effect from 20th December, 1982 and posted him with their Security Division, Export Processing Zone at Karachi. By another office order passed on 25th January, 1987 the services of the aforesaid respondent were terminated with effect from 25‑1‑1987 (a.n.) as his services were no more required.

2. The respondent being aggrieved by such order terminating his services filed an application under Section 25‑A, Industrial Relations Ordinance, 1969 before the IVth Sind Labour Court at Karachi. The petitioners when served recorded an endorsement on the summons itself that the labour Court lacked jurisdiction in the matter and did not put in appearance before the Labour Court. The, point so raised was thoroughly examined by the Labour Court and by its order passed on 11th August, 1987 the application tiled by Mohammad Akram was dismissed. The Court held that its jurisdiction in case was barred by 'the notification issued on 10‑10‑1982 by the Federal Government under Section 25 of the Export Processing Zones Authority Ordinance, 1950 whereby the processing Zone was exempted from the applicability of the laws mentioned therein. Such notification included an exemption from application of Industrial Relations Ordinance, 1969 and West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 as well as.

3. The respondent Mohammad Akram being further aggrieved by such a decision of the Labour Court filed an appeal before the Sind Labour Appellate Tribunal at Karachi. The Sind Labour Appellate Tribunal at Karachi by its judgment passed on 17‑4‑1988 held that respondent as a Chowkidar was also doing additional duties of labour and that by terminating his services without any reason the application filed by him under section 25‑A of the 1.R.0. 1969, was competent. He therefore set aside the order terminating his services and the order of the Labour Court dismissing his application as being incompetent and directed him to be restored in service with full back benefits.

4. The petitioners being aggrieved by the order of the Sind Appellate Labour Tribunal have filed this petition under Article 199 of the Constitution of the Islamic Republic of Pakistan, 1973.

5. Mr. Naimur Rehman the learned Advocate for the petitioners contended that the Federal Government in exercise of their powers conferred by section 25 of the Export Processing Zones Authority Ordinance, 1980 (1V of 1980) were pleased to exempt the Export Processing Zones from all the provisions of the following laws, namely:‑

(1) The Workmen's Compensation Act, 1923 (VIII of 1923);

(2) The Factories Act, 1934 (XXV of 1934);

(3) The Payment of Wages Act, 1936 (IV of 1936);

(4) The Minimum Wages Ordinance, 1961 (XXXIX of 1961);

(5) The Provincial Employees' Social Ordinance, 1965 (W.P. Ordinance No.X of 1965);

(6) The West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (W.P. Ordinance No. V1 of 190kg);

(7) The Industrial Relations Ordinance, 1969 (XXIII of 1969);

(8) The West Pakistan Shops and Establishment Ordinance, 1969 (W.P. Ordinance No. V11 of 1969); and

(9) The Employees' Old‑Age Benefits Act, 1976 (XIV of 1976).

6. In view of it the application filed by respondent Mohammad Akram under section 25‑A of the Industrial Relations Ordinance, 1969 was not maintainable.

7. Mr. Muhammad Shafiq Oureshi, Advocate for . the respondent Mohammad Akram submitted that the exemption granted under section 25 from the application of laws mentioned in the notification was applicable only in case of employees working with the Industrial undertakings in the Export Processing Zones and not to the employees of the Export Processing Zone Authority itself.

8. In order to appreciate the contentions raised by the parties it is necessary to reproduce section 25 of the Export Processing Zones Authority Ordinance, 1980 as under:

9. "25. Power to exempt .‑‑Federal Government may, by notification in the official Gazette, exempt any zone from the operation of all or any of the provisions of any law for the time being in force which relates to any matter within the legislative competence of Parliament."

10. From the plain reading of the above provisions of law it becomes clear that the Federal Government can by a notification published in the official Gazette grant exemption to "any zone" from the operation of laws which fall within the legislative competence of the Parliament. The exemption in such cases is therefore granted in respect of "any zone" and not to any concern or industrial undertaking or any person or class of persons. "Zone" according to its definition contained in section 2 (k) of the Ordinance means such area which the Federal Government by notification in the official Gazette may declare to be a zone for I the purposes of the Ordinance. The Federal Government by their notification dated 13th September, 1981 published in the Gazette of Pakistan, Extraordinary issue, of 14‑9‑1981 on page 2074 declared an area of 300 acres situated in Landhi 4, Industrial Area, Karachi duly demarcated and fenced to be a zone for the purpose of the‑ said Ordinance. This notification further described the area in question by metes and bounds. In view of above it becomes clear that the power to grant exemption from the operation of certain laws under section 25 of the said Ordinance in fact relates to physical and geographically well-defined area within a zone. 1t then matters little: if any person be working under the Export Processing Zones Authority or with an industrial undertaking established in the zone. Exemption from the operation of Federal Laws as notified by the Federal Government under section 25 of the Ordinance extends to every one without any distinction within the notified zone.

11. In view of the foregoing reasons we are unable to agree with the contention of Mr. Mohammad Shafiq Qureshi, Advocate for the contesting respondent that the exemption from the operation of such laws relates to only employees of the Industrial undertakings and not those working under the authority itself and we hold that in view of exemption granted by the, Federal Government the provisions of Industrial Relations Ordinance, 1969 and the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1908 are not applicable to the case of Mohammad Akram and his application before the Labour Court was not competent. We therefore, declare the order dated 17th April, 1988 passed by the Sind Labour Appellate Tribunal, Karachi to have been passed by it without any lawful authority and to be of no legal effect. As a result of above declaration the respondent No .2 is directed to refund the amount withdrawn from the Court.

12. We had in view of above by our short order passed on .20‑9‑1989 allowed the petition with no order as to the costs while above are the reasons for the same.

13. AA./E‑32/K Petition accepted.