DEPUTY DIRECTOR PESSI and others vs Messrs GHAZI FABRICS, INTERNATIONAL LTD. and others
This matter involves a series of civil petitions for leave to appeal filed by the Deputy Director of the Punjab Employees Social Security Institution against a judgment of the Lahore High Court. The core legal dispute arose from the imposition of penalties under Section 23(1) of the Punjab Employees Social Security Ordinance, 1965, regarding the failure to pay contributions on payments made under the Punjab Employees Special Allowance (Payment) Act, 1988. The respondents had challenged these penalties, and the High Court had set aside the Social Security Court's order that upheld the demands. The petitioners argued that the High Court's decision was discriminatory by exempting only those respondents who had availed themselves of judicial remedies. The Supreme Court dismissed the petitions, holding that the criteria relied upon by the petitioners for classification did not constitute a reasonable classification permissible under Article 25 of the Constitution of Pakistan, 1973. The Court affirmed that differential treatment based solely on the pursuit of judicial remedy does not satisfy the requirements of equality before the law.
- Does the exemption from penalties for those who have availed of judicial remedies constitute a reasonable classification under Article 25 of the Constitution of Pakistan 1973?
- Can penalties be imposed under Section 23(1) of the Punjab Employees Social Security Ordinance 1965 for failure to pay contributions on payments made under the Punjab Employees Special Allowance (Payment) Act 1988?
- Section 23(1), Punjab Employees Social Security Ordinance 1965
- Article 25, Constitution of Pakistan 1973
- Punjab Employees Special Allowance (Payment) Act 1988
' FALAK SHER, J.---We propose to dispose of Civil Petitions for leave to appeals Nos.905 to 913-L of 2002 having commonality of facts and law and stemming out of the same judgment of a learned Judge of the Lahore High Court, Lahore dated 14-1-2002, granting the respondents F.A.O's setting aside the order of Judge. Social Security Court dated 1-11-2001, turning down the respondents complaint, grudging against imposition of increased demand under section 23(1) of the Punjab Employees Social Security Ordinance, 1965 in the nature of penalty for failure to pay contribution on the payments made under the Punjab Employees Special Allowance (Payment) Act, 1988 vires whereof was upheld in the case of "Shamas Textile Mills Ltd. And others v. The Province of Punjab and 2 others (1999 SCM R 1477) being discriminatory", having exempted from penalty those respondents who had availed of judicial remedy present petitions have been re-coursed.
2. Which we are afraid are misconceived since the banked upon criteria hardly constitute reasonable classification permissible tinder Article 25 of the 1973 Constitution and are accordingly dismissed declining leave.