Pakistan Case Law
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1995 SCMR 818
[Supreme Court of Pakistan]

MAQSOOD AHMAD Versus ACCOUNTANTGENERAL, PAKISTAN REVENUE, ISLAMABAD

Civil Petitions Nos. 415‑L and 416‑L of 1993, decided on 9th May, 1994.
Authored by Abdul Qadeer Chaudhry. Result: Leave granted.
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Summary

This matter concerns a petition for leave to appeal against orders passed by the Federal Service Tribunal, which had dismissed the petitioner's claim for pension payments at an enhanced rate. The petitioner, who retired on 25 July 1970, sought the benefit of an Office Memorandum dated 3 October 1991, specifically relying on paragraph 4, which stipulates that pension calculations for all pensioners should be made in accordance with the latest rules. The core legal question before the Supreme Court is whether the Federal Service Tribunal erred in its interpretation of this Memorandum by restricting its application to the pension rules in force at the time of an individual's retirement, rather than applying the latest rules as the Memorandum suggests. The Supreme Court granted leave to appeal to determine if the Tribunal's interpretation contradicts the principles established in the precedent of I.A. Sharwani v. Government of Pakistan (1991 SCMR 1041). The Court's holding focuses on resolving the conflict between the Tribunal's restrictive reading of the pension policy and the broader interpretation required by the cited precedent regarding the calculation of pension benefits for retirees.

Questions settled in this judgment
  • Does the Office Memorandum dated 3rd October 1991 require pension calculations to be based on the latest rules regardless of the date of retirement?
  • Did the Federal Service Tribunal err in interpreting paragraph 4 of the Office Memorandum dated 3rd October 1991 as being limited to pension rules applicable at the time of retirement?
  • Is the interpretation of the Office Memorandum dated 3rd October 1991 by the Federal Service Tribunal contrary to the decision in I.A. Sharwani v. Government of Pakistan?
pension benefitsservice lawpension calculationinterpretation of office memorandumleave to appealfederal service tribunal

ABDUL QADEER CHAUDHRY,J.---The petitioner seeks leave to appeal in these petitions against the orders of the Federal Service Tribunal, Islamabad, dated 1.2-1993 and 26-1-1993.

2.The petitioner was retired on 25-7-1970. He on the basis of Office Memorandum dated 3-10-1991 claimed the payment of pension at enhanced rate. His request was not entertained. The Tribunal also dismissed his appeal.

3.The interpretation of Memorandum No, F.6(4)/Reg(6)/91, dated 3rd October, 1991, requires examination. Para. 4 of this Memorandum provides that "pension shall be calculated for all pensioners from time to time in accordance with latest rules." According to the Accountant- General and the Service Tribunal, paragraph 4 of O.M. Is suggestive of the Pension Rules applicable at the time of an individual's retirement.

4.Leave is granted in these cases to consider whether the Service Tribunal has not made the interpretation contrary to the decision of this Court in IA. Sharwani v. Government of Pakistan (1991 SCM R 1041) .

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