Pakistan Case Law
1986 SCMR 1330

MUHAMMAD FAROOQ KHAN vs KARACHI CLUB And Other

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Citation1986 SCMR 1330
CourtSupreme Court of Pakistan
Case No.Constitutional Petition No. D-552 of 1981 Civil Petition No. 418-K of 1985
Date1986-03-08
Judge(s)S. A. Nusrat and Zaffar Hussain Mirza
Authored byS.A. Nusrat
ResultLeave granted
AI Summary — generated from this judgment; read the full text below and verify before relying on it.

The petitioner, a former Accountant at the Karachi Club, challenged a High Court judgment that set aside orders granting him back benefits. Initially, the petitioner was dismissed for misconduct, but a Labour Court ordered his reinstatement without back benefits, allowing for a fresh inquiry. Subsequently, the petitioner's post was abolished, rendering his appeal against the initial order infructuous. Despite the abolition of the post, the employer conducted an inquiry and dismissed him without back benefits. The petitioner then sought back benefits under Section 51 of the Industrial Relations Ordinance, which the Labour Court granted. The High Court, however, ruled that Section 51 only permits the recovery of money due under a settlement or award and does not authorize the determination of disputed claims. The petitioner appealed to the Supreme Court, arguing that the High Court failed to properly consider the scope of subsection (2) of Section 51 regarding the recovery of dues. The Supreme Court granted leave to appeal to examine whether Section 51 encompasses the determination of such claims.

Questions settled in this judgment
  • Does Section 51 of the Industrial Relations Ordinance 1969 provide for the determination of disputed dues claimed against an employer?
  • Is the recovery mechanism under Section 51 of the Industrial Relations Ordinance 1969 limited only to money already determined as due under a settlement or award?
  • Can an employee claim back benefits under Section 51 of the Industrial Relations Ordinance 1969 following an inquiry conducted after the abolition of their post?
Laws & provisions referred
  • Section 25-A, Industrial Relations Ordinance 1969
  • Section 51, Industrial Relations Ordinance 1969
  • Section 51(2), Industrial Relations Ordinance 1969
back benefitsindustrial relationslabour courtrecovery of duesdismissal from servicestatutory interpretation

ORDER

S.A. NUSRAT, J.--The petitioner, who was in the service of the respondents as an Accountant, was dismissed from service on the charge of misconduct on 28-8-1975. He made an application under section 25-A of the Industrial Relations Ordinance which was allowed by the Sind Labour Court by order dated 30-4-1978, and the respondent was directed to reinstate him in service without back benefits. It was however, observed that since the order of dismissal was set aside on technical ground, the respondent was free to hold fresh domestic enquiry against the petitioner and the petitioner's claim of back benefit will depend upon the said enquiry". This decision was challenged by the petitioner in appeal before the Sind Labour Appellate Tribunal and further proceedings before the respondent were stayed. Meanwhile the post of Accountant against which the petitioner was employed was abolished on 30-10-1978 and the petitioner's appeal was, therefore, dismissed as having become in fructuous. The respondents nonetheless held an enquiry against the petitioner and he was dismissed without allowing him any back benefits. The petitioner thereupon filed an application under section 51 of the Ordinance claiming back benefits in the Sind Labour Court which was allowed on 7-1-1981, and the respondent was directed to pay all back benefits to the petitioner due up to the date of termination of his service on 30-11-1978. The respondents approached the Sind Labour Appellate Tribunal for setting aside the order of the Sind Labour Court in the exercise of suo motu powers of revision which was dismissed on 16-2-1981. The respondents thereupon filed a constitutional petition in the Sind High Court challenging the orders dated 7-1- 1981 and 16-2-1981 respectively passed by the Sind Labour Court and the Sind Labour Appellate Tribunal which was allowed as per impugned judgment.

2. We heard the learned counsel and have gone through the impugned judgment. The learned High Court has held that section 51 of the Industrial Relations Ordinance only envisages recovery of any money due from an employer under the settlement, or under an award or decision of the Arbitrator, Labour Court or Tribunal as arrears of land revenue or as a public demand but this section does not provide for determination of any dues claimed against employer.

3. It was, however, contended on behalf of the petitioner that the petitioner's claim was covered by subsection (2) of section 51 of the Industrial Relations Ordinance which aspect has not been properly appreciated by the learned High Court.

4.The above contention needs examination. Leave to appeal is accordingly granted. Security Rs.500. The appeal shall be made ready, on the present record but it will be open to the parties to file additional documents, if any.

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