Pakistan Case Law
1997 PLC (C. S.) 604

SHAMS TEXTILE MILLS LTD. And Other vs PROVINCE OF PUNJAB And Others

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Citation1997 PLC (C. S.) 604
CourtSupreme Court of Pakistan
Case No.C.P. No. 810-L of 1996 C.P. No. 957-L of 1996 C.Ps. Nos. 783/1
Date1996-04-16
Judge(s)Saad Saood Jan, Muhammad Ilyas and Irshad Hasan Khan
ResultLeave granted
AI Summary — generated from this judgment; read the full text below and verify before relying on it.

This matter comes before the Supreme Court of Pakistan on a petition for leave to appeal against an order regarding the computation of social security contributions. The core legal question raised is whether the special allowance paid to a worker pursuant to the Punjab Employees Special Allowance (Payment) Act 1985 must be included as part of his wage for calculating the employer's contribution under the West Pakistan Employees' Social Security Ordinance 1965, notwithstanding the explicit statutory exemption provided under Section 8 of the 1985 Act. The Supreme Court granted leave to appeal to consider and resolve this question of statutory interpretation concerning the interaction between the exemption clause in the 1985 Act and the definition of wages for social security contributions. The Court further ordered that the interim relief granted to the appellants on 17-01-1996 shall continue to remain in operation on the same terms during the pendency of the main appeals.

Questions settled in this judgment
  • Whether special allowance paid under the Punjab Employees Special Allowance (Payment) Act 1985 forms part of wages for social security contribution?
  • Does Section 8 of the Punjab Employees Special Allowance (Payment) Act 1985 exempt special allowance from social security contribution calculations under the West Pakistan Employees' Social Security Ordinance 1965?
Laws & provisions referred
  • Punjab Employees Special Allowance (Payment) Act 1985
  • Section 8, Punjab Employees Special Allowance (Payment) Act 1985
  • West Pakistan Employees' Social Security Ordinance 1965
leave to appealspecial allowancewages computationsocial security contributionstatutory exemptioninterim order

ORDER

1. SAAD SAOOD JAN, J:---Leave to appeal is granted to consider whether the special allowance being paid to a worker in pursuance of the provisions of the Punjab Employees Special Allowance (Payment) Act, 1985, is to be treated as part of his wage for the purpose of computing the contribution which his employer is liable to make under the Social Security Ordinance, 1965, despite the specific exemption granted by section 8 of the aforementioned Act. The interim order already made on 17-1-1996 to continue during the-pendency of the appeals on the same terms.

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