PLC(CS) 2025

2025 PLP (C (PLC(CS))

GUL NABI SYED Versus GOVERNMENT OF PAKISTAN through Secretary, Ministry of Energy Power Division, Islamabad and others

Jurisdiction / Court
Peshawar High Court
Decided Date
W.P. No.12-P with I.R. C.O.C. No.32-P and C.Ms. Nos.603, 506, 558, 438 and 244-P of 2023, decided on 1st June, 2023.
Honorable Judges
Ijaz Anwar and Shakeel Ahmad, J
Case Reference Summary (AEO Optimized)
Citation 2025 PLP (C (PLC(CS))
Forum / Court Peshawar High Court
Bench Members Ijaz Anwar and Shakeel Ahmad, J
Parties GUL NABI SYED Versus GOVERNMENT OF PAKISTAN through Secretary, Ministry of Energy Power Division, Islamabad and others
Primary Law (a) Companies Act (XIX of 2017), (b) Companies Act (XIX of 2017), (c) Administration of justice
💡 Quick Legal QA & Summary / سوال و جواب خلاصہ
Q1: What are the key laws and sections cited in 2025 PLP (C (PLC(CS))?

This judgment primarily cites: (a) Companies Act (XIX of 2017), (b) Companies Act (XIX of 2017), (c) Administration of justice as referenced in Pakistani case law index.

Q2: Which judicial bench decided the case 2025 PLP (C (PLC(CS))?

The case was heard and decided by the Peshawar High Court bench comprising: Ijaz Anwar and Shakeel Ahmad, J.

Q3: What is the official citation format for this judgment on Pakistan Law Portal?

Cite this legal precedent as: 2025 PLP (C (PLC(CS)) (GUL NABI SYED Versus GOVERNMENT OF PAKISTAN through Secretary, Ministry of Energy Power Division, Islamabad and others). Read the full summary and cross-referenced laws free on Pakistan Law Portal.

Laws Cited

(a) Companies Act (XIX of 2017) (b) Companies Act (XIX of 2017) (c) Administration of justice

Representation

  • Ghulam Mohy-ud-Din Malik and Muhammad Sufyan Malik for Petitioners.
  • Hasnain Tariq, Additional Advocate General, Sana Ullah, Assistant Attorney General, Barrister Waqar Ali, Shumail Ahmad Butt, Dr. Shakeel Azam Awan, Mashhood Hassan Azam Awan and Asad Jan for Respondents.
  • Pakistan Electric Power Company v. Syed Salahuddin and others 2002 SCMR 991; Muhammad Tufail v. Abdul Ghafoor and others PLD 1958 SC 201; Selling of National Assets including PLA at Throwaway Price 2019 SCMR 1952; Muhammad Yasin v. Federation of Pakistan PLD 2012 SC 132; Secretary to Government of the Punjab, Communication and Works Department, Lahore and others v. Muhammad Khalid Usmani and others 2016 SCMR 2125; Federation of Pakistan v. Rais Khan 1993 SCMR 609; Jaffar Ali Akbar Yousafzai v. Islamic Republic of Pakistan PLD 1970 Quetta 115; Pakistan Railways v. Zafarullah 1997 SCMR 1730; Province of Sindh and others v. Ghulam Fareed and others 2014 SCMR 1189 and Rab Nawaz Dhadwana, Advocate and others v. Rana Muhammad Akram, Advocate and others PLD 2014 Lah. 591 rel.
  • 22. Recently, a Larger Bench of the Hon'ble Lahore High Court in the case titled, "Rab Nawaz Dhadwana, Advocate and others v. Rana Muhammad Akram, Advocate and others (PLD 2014 Lahore 591)", has observed as under:-

Headnotes / Summary

S.186

Public Sector Companies (Corporate Governance) Rules, 2013, R.5(2)

Public Sector Companies (Appointment of Chief Executive) Guidelines, 2015, Sched.-II

State-Owned Enterprises (Governance and Operations) Act (VII of 2013), S.18

Constitution of Pakistan, Art.199

Constitutional Petition

Maintainability

Non-statutory rules of service

Petitioner, Chief Executive Officer of Peshawar Electric Supply Company, challenged the company's order for the appointment of respondent against his post

Main objection to the maintainability of this petition was that the respondent-company had got no statutory rules of service governing the terms and conditions of its employees

In the instant case, appointment to the office of CEO PESCO had been questioned

Appointment to such office was governed by statutory instruments and the appointing authority was the Federal Government

Appointment of the petitioner was issued through Notification dated 06-09-2022 after the approval of the Federal Cabinet by the Ministry of Energy Power Division, Government of Pakistan, which was subsequently superseded vide Notification dated 12.01.2023 issued by the same Ministry appointing, respondent as CEO, on stopgap arrangement, purely on temporary basis till further order

At the relevant time, the Companies Act, 2017, read with the Public Sector Companies (Corporate Governance) Rules, 2013, read with Public Sector Companies (Appointment of Chief Executive) Guidelines, 2015 and the State-Owned Enterprises (Governance and Operations) Act, 2023, were governing the terms and conditions and method of appointment to such post

All these rule were framed and notified by the Federal Government

In view thereof, High Court had necessary Jurisdiction to entertain and adjudicate upon the matter in hand. Pakistan Electric Power Company v. Syed Salahuddin and others 2002 SCMR 991; Muhammad Tufail v. Abdul Ghafoor and others PLD 1958 SC 201; Selling of National Assets including PLA at Throwaway Price 2019 SCMR 1952; Muhammad Yasin v. Federation of Pakistan PLD 2012 SC 132; Secretary to Government of the Punjab, Communication and Works Department, Lahore and others v. Muhammad Khalid Usmani and others 2016 SCMR 2125; Federation of Pakistan v. Rais Khan 1993 SCMR 609; Jaffar Ali Akbar Yousafzai v. Islamic Republic of Pakistan PLD 1970 Quetta 115; Pakistan Railways v. Zafarullah 1997 SCMR 1730; Province of Sindh and others v. Ghulam Fareed and others 2014 SCMR 1189 and Rab Nawaz Dhadwana, Advocate and others v. Rana Muhammad Akram, Advocate and others PLD 2014 Lah. 591 rel.

S.186

Public Sector Companies (Corporate Governance) Rules, 2013, R.5(2)

Public Sector Companies (Appointment of Chief Executive) Guidelines, 2015, Sched.-II

State Owned Enterprises (Governance and Operations) Act (VII of 2023), S.18

Stopgap appointment

Petitioner was appointed as Chief Executive Officer of Peshawar Electric Supply Company as a stopgap arrangement purely on temporary basis, and he challenged the company's order for the appointment of respondent against his post

Validity

Apparently, it seemed that the appointment of the petitioner as well as the respondent had not been made in accordance with law nor could it be expected from such short-term appointees that they could focus on goal setting and long term planning to make the company a profitable organization

In numerous cases, such temporary arrangement exploit the situation and such officers were playing in the hands of political figures in order to prolong their temporary position, instead of focusing on long term planning and policy decisions

In the given circumstances, assigning the responsibility of the post of CEO through such temporary arrangements would never be helpful rather would worsen the situation

Provisions of "the Act", "the Rules" and "Guidelines" specifically provided the procedure and manner in which the post of CEO of Public Sector Company was to be filled, High Court deprecated such practice of adhocism, and appointments on look after or acting charge basis

Appointment on acting charge basis or stopgap arrangement is usually made pending process of a regular incumbent

Since the appointment of the petitioner in September, 2022, and even after the appointment of respondent as CEO, till date no such process had ever been initiated

Such appointments were, thus, violative of the principle of appointment on stopgap arrangement

Hence, it was directed that the appointment to the office of CEO as provided under "the Act" "the Rules" "the Guidelines" and "Act of 2023", be made within a period of two months positively

In case, the appointment to the said post was not made, the appointment of respondent shall no longer be valid thereafter

Constitutional petition stood disposed of in the above terms.

If a thing is to be done in a particular manner then it must be done in that manner or not at all.

Judgment & Decree

IJAZ ANWAR, J.

This writ petition is filed under Article 1999 of the Constitution of Islamic Republic of Pakistan, 1973, with the following prayer:- "It is, therefore, most humbly prayed that on acceptance of this writ, petition, the proposed impugned order of appointment of respondent No.5 may graciously be declared null and void, without lawful authority, void ab initio, ineffective and of no legal consequences, against the rights and position of the petitioner. Secondly, an order, calling upon the official/ respondent and others to bring before the Hon'ble Court all the relevant record of interview, recommendations made by them regarding selection and appointment of the petitioner as CEO PESCO. Thirdly, the respondent may permanently be refrained from removing the petitioner and in his place, posting respondent No.5, and that also declare their acts and actions unlawful, not permitted by law and Constitution of Islamic Republic of Pakistan, 1973. Any other relief, not specifically asked for may graciously be extended in favour of the petitioner in the circumstances of the case".

2. In essence, the petitioner was initially appointed as Junior Engineer (BPS-17) in respondent-PESCO in the year, 1990 and promoted from time to time on different posts and lastly posted as Chief Executive Officer (hereinafter to be referred as "CEO") as a stopgap arrangement purely on temporary basis with immediate effect and until further order. He is aggrieved of the proposal/moving summery by the Federal Government to the Cabinet for appointment of respondent No.5 namely Engr. Arif Mehmood Sadozai as CEO PESCO.

3. Comments were called from the respondents who furnished the same, wherein, they opposed the issuance of desired writ asked for by the petitioner.

4. During the pundency of this petition, it was disclosed that the petitioner has already been removed and respondent No.5 has been appointed as CEO vide Notification dated 12-01-2023, an amended writ petition was filed thereafter, without seeking permission of this Court, in the interest of justice and to avoid multiplicity of proceedings, the amended writ petition is entertained.

5. This case was extensively argued by learned counsel for the parties at length, besides, preliminary objection to the maintainability of this petition was also raised. The arguments are not reproduced in order to avoid repetition and would be taken note in the body of the judgment while deciding the case.

6. The main objection to the maintainability of this petition was that the respondent-company has got not statutory rules of service governing the terms and condition of its employees and as such, in terms of the recent judgment of the Hon'ble Supreme Court of Pakistan in the case titled "Pakistan Electric Power Company v. Syed Salahuddin and others (2002 SCMR 991)", wherein, such proposition has elaborately been dealt with. We are respectfully following the above pronouncement of the Hon'ble Supreme Court of Pakistan, however, in the instant case, appointment to the office of CEO PESCO has been questioned, the appointment to such office is governed by statutory instruments and the appointing authority is the Federal Government and as such, in the matter in hand, we are not implementing any of the instructions/by-laws or non-statutory rules rather would examine whether the law governing appointment to the office of CEO has been followed or not. Similarly, the appointment of the petitioner was issued through Notification dated 06-09-2022 after the approval of the Federal Cabinet by the Ministry of Energy Power Division, Government of Pakistan, which was subsequently superseded vide Notification dated 12.01.2023 issued by the same Ministry appointing Engr. Arif Mehmood Sadozai as CEO, on stopgap arrangement, purely on temporary basis till further orders. At the relevant time, the Companies Act, 2017 (hereinafter to be referred as "the Act") read with the public Sector Companies (Corporate Governance) Rules, 2013 (hereinafter to be referred as "the Rules") read with Public Sector Companies (Appointment of Chief Executive) Guidelines, 2015 (hereinafter to be referred as " the Guidelines") and the State-Owned Enterprises (Governance and Operations) Act, 2023 (hereinafter to be referred as (the "Act of 2023") were governing the terms and conditions and method of appointment to such post. All these rules were framed and notified by the Federal Government. In view thereof we are of the opinion that this Court has necessary jurisdiction to entertain and adjudicate upon the matter in hand. Reference can be made to the case titled "Muhammad Tufail v. Abdul Ghafoor and others (PLD 1958 SC 201), Selling of National Assets including PIA at Throwaway Price (2019 SCMR 1952) and Muhammad Yasin v. Federation of Pakistan (PLD 2012 SC 132)"

7. Now adverting to the main issue involved in the case. In the instant matter, vide Notification dated 06.09.2022, the petitioner, while serving as Chief Engineer PESCO, was assigned to look after the work of CEO as stopgap arrangement, purely on temporary basis with immediate effect until further orders.

8. The respondent-company is a public limited company within the meaning of Section 2(54) of "the Act" Section 2(54) of "the Act" is reproduced as under:- " Public sector company' means a company, whether public or private, which directly or indirectly controlled, beneficially owned or not less then fifty-one percent of the voting securities or voting power of which are held by the Government or any agency of the Government or a statutory body, or in respect of which the Government or any agency of the Government or a statutory body, has otherwise, power to elect, nominate or appoint majority of its directors and includes a public sector association not for profit, licensed under Section 42: Provided that nomination of directors by the Commission on the board of the securities exchange or any other entity or operation of any other law shall not make it a public sector company."

9. Section 186 of " the Act" deals with the appointment of CEO of the private and public limited company, however, subsection (4) of Section 186 of "the Act" gives the exclusive powers of the Government to nominate CEO of a public limited company in such a manner as may be specified. Similarly, Section 188 of " the Act" deals with the "terms of appointment of Chief Executive" while Section 190 of "the Act" provides the procedure for removal of Chief Executive/CEO. Section 190(2) of "the Act" again empowered the Federal Government or an authority or a person authorized by it to have the power to remove Chief Executive of a company where more than seventy-five percent of the voting rights are held by the Government.

10. The Federal Government has formulated and notified "the Rules". Rule 2(c) of "the Rules" Includes Chief Executive in the definition or 'Executive'; similarly, Rule 4 of "the Rules" provides for the 'Role of the Chairman and Chief Executive', while Rule 5 of "the Rules" provides for the 'responsibilities, powers and functions of the Board'; similarly, Rule 5(2) of "the Rules", provides the criteria to be followed for appointment of CEO of Public Sector Company. Rule 5(2) of "the Rules", being relevant, is reproduced as under:- "5(2) The Board shall evaluate the candidates based on the fit and proper criteria and the guidelines specified by the Commission for appointment to the position of the chief executive and recommend at least three candidates to the Government for its concurrence for appointment of one of them as chief executive of the Public Sector Company, except where the chief executive is nominated by the Government. On receiving concurrence or nomination of the Government, as the case may be, the board shall appoint the chief executive in accordance with the provisions of the Act. The Board shall also be responsible for development and succession planning of the chief executive".

11. Similarly, Rule 8 of " the Rules" provides for the ' performance evaluation' of the Chief Executive and the Chairman annually by the Government. Rule 8 of "the Rules" is also reproduced as under:-

8. Performance Evaluation.-(1) The performance evaluation of members of the Board including the chairman and the chief executive shall be undertaken annually by the Government for which the Government shall enter into performance contract with each member of the Board at the time of his appointment. (2) The Board shall monitor and assess the performance of senior management on a periodic basis, at least once a year, and hold them accountable for accomplishing objectives, goals and key performance indicators set for this purpose."

12. In terms of Rule 5(2).of "the Rules", "the Guidelines" were notified which deals with the appointment, fitness and propriety of the Chief Executive of such public sector company. Schedule-I of "the Guidelines." Provides the procedure for appointment of Chief Executive. It, being relevant, is reproduced as under:- Schedule-I Procedure for Appointment of Chief Executive "The principles of transparency, merit and equal opportunities shall be followed while making appointment to the position of the chief executive. Following procedure may be followed by the Board of a public sector company while making appointment to the position of chief executive:

1. Development of Job Profile/Job Description: - The Board shall develop a job profile containing job description for the chief executive in the light of the job requirements and the fit and proper criteria specified by the Commission.

2. Advertisement for the Position:- (1) The Board shall imitate the appointment process, at least three months before the term of the incumbent chief executive is going to expire is issuing a public advertisement in the print media inviting application for appointment against the vacant position. The Advertisement shall also be posted on the website of the Public sector company or that of the line ministry. Directed application shall also be acceptable, and the fact may be specified in the advertisement. (2) The applicant shall be required to complete and sign an Application Form, as per Annexure "A" to these Guidelines, to demonstrate his fitness and propriety for the position of the chief executive. Copies of the degrees/testimonials, duly verified by the Higher Education Commission or the professional body or association, whichever is relevant, shall also be provided along with the application. (3) The applicant shall also submit a declaration on a non-judicial stamp paper of requisite value, as per Annexure "B" to these Guidelines, that he is not ineligible to act as a chief executive, in accordance with the provisions of the Ordinance, the Rules and these Guidelines. (4) The appointing authority may hire the services of an executive search agency for assistance in the appointment process, including issuance of the advertisement.

3. Short listing process. The Board shall shortlist the applicants from the following sources: (1) Those short listed through the database, (2) Those applying against the public advertisement, and (3) Those derived through the succession plan.

4. Evaluation of Candidates.- (1) The Board shall undertake evaluation of the short listed candidates on the basis of the Fit and Proper Criteria specified by the Commission. (2) The Board shall arrange necessary due diligence and pre- appointment scrutiny of the short listed candidates through the concerned departments/agencies, including SECP, FBR, NADRA, SBP, HEC, concerned sectoral regulator/professional body or association and others, as deemed appropriate.

5. Interviewing Process. The Board shall conduct the preliminary interview of the candidate keeping in view the following: (a) The chief executive has the primary responsibility for the management of the public sector company's affairs, its performance as well as implementation of corporate strategy. Accordingly, the interview for the position of chief executive shall primarily focus on having the candidate present his strategic vision for running the affairs, and/or turning around the performance of the public sector company. (b) The candidate's skill set including his technical expertise/sectoral knowledge, leadership, strategic vision, as well as communication skills, etc., shall be thoroughly evaluated. (c) Interviews shall be conducted on merit and against clear criteria, as set out in the fit and proper test as well as the vacancy profile. Reasons for decisions shall be recorded. Only the candidates who meet the criteria shall be interviewed. (d) It shall be ensured at interview that the candidates demonstrate that they are committed to, and have an understanding of the value and importance of the principles of public service. (e) The interview shall be used to explore any potential conflicts of interest declared by the candidates. Even if a candidate does not declare a conflict of interest, the nomination committee still needs to reassure that no conflict of interests exists. (f) If any conflict of interest situation explored during the interview, is resolved by the candidate, he may be considered to be shortlisted for the position. (g) The interview shall also be used to explain the importance of adhering to the public sector company's code of conduct, and to emphasize the importance placed on maintaining high standards of propriety in the conduct of the public sector company's business.

6. Recommendation from the Board to the Competent Authority.- (1) The Board shall recommend a minimum of three candidates to the line ministry for appointment to the position of Chief Executive. (2) Copy of the minutes of meeting of the Board recommending the short listed candidates shall be forwarded to the line ministry for information and perusal. (3) If the line ministry does not concur to appoint any of the proposed candidates, it shall highlight the reasons for non- concurrence and refer the matter back to the public sector company for reconsideration and with the direction to identify additional/alternative candidates. (4) The Board may either re-evaluate the candidates from the pool of available applicants or reinitiate the appointment process, if none of the short listed candidates is found fit and proper for the position. (5) The candidates shall be recommended to the line ministry in the order of preference based on the results of evaluation.

7. Appointment of Chief Executive. (1) Upon concurrence of the competent authority, the Board shall appoint the chief executive and issue him a contract letter, with the requisite terms and conditions of appointment, signed by the Chairman, or other person authorized by the Board. (2) It shall be ensured that the appointment of chief executive is finalized at least thirty days before the date of expiry of the term of the incumbent chief executive so that the appointment is made by the Board within the period stipulated under sections 198 and 199 of the Ordinance".

13. While Schedule-II of "the Guidelines" provides for the 'fitness and criteria for appointment of Chief Executive of a Public Sector Company'. The same is also reproduced as under:- Schedule-II Fit and proper Criteria for Appointment as Chief Executive of a Public Sector Company:

1. In order to determine whether a candidate proposed to be appointed as a chief executive of a public sector company is fit and proper for the position, the following factors shall be taken into consideration: (1) Competence and capability -- he must have the necessary skills, experience, ability and commitment to carry out the role efficiently and effectively. (2) Probity, personal integrity and reputation -- he must possess personal qualities such as honesty, integrity, diligence, independence of mind and fairness, and has the ability to represent a cohesive vision and strategy to all. (3) Financial integrity -- he must be capable to manage his debts or financial affairs prudently.

2. The Board of the public sector company shall also ensure that that the person is not ineligible to act as a chief executive pursuant to section 201 read with section 187 of the Companies Ordinance, 1984.

3. The assessment of the above criteria shall have regard to the considerations set out below: (1) Competence and Capability: (a) Competence and capability are demonstrated by a person who possesses the relevant competence, experience and ability to understand the technical requirements of the business, the inherent risks and the management process required to perform his role effectively as a chief executive. (b) In assessing a person's competence and capability, the appointing authority shall consider matters including, but not limited to the following: (i) Whether the person has the appropriate qualification, training, skills, practical experience and commitment to effectively fulfill the role and responsibilities of the position; and (ii) Whether the person has satisfactory past performance or expertise in the nature of the business being conducted. (c) To undertake the aforesaid assessment effectively, the following parameters are prescribed for consideration: (i) He must (sic) I. Possess a graduate degree from a well-reputed institute or such other professional qualification relating to the principle line of business of the public sector company, including manufacturing, mining, science, technology, agriculture, social science, or any other field commensurate to the job, or II. Be a member of a recognized body of professional accountants, or III. Be a recognized businessman or professional with a postgraduate degree in business administration or public administration or finance or commerce or marketing or equivalent; and (ii) He must possess demonstrated experience of not less than ten years: I. In governance or business administration or public administration or finance or commerce or marketing or any other field commensurate to the job in significant organizations with a commercial orientation, or II. as chief executive or at a senior management level in similar organizations that have commercial attributes, or III. at senior positions in relevant professional areas including, inter alia, science, technology, finance, law, business, agriculture, social sciences, etc., or IV. in community or professional organizations; or V. at the level of member of governing body of a professional institute or as a head of department. 2) Probity, Personal Integrity and Reputation: (a) Probity, personal integrity and reputation are values that are demonstrated over time. These attributes demand a disciplined and on-going commitment to high ethical standards. (b) In assessing a person's level of probity, integrity and reputation to hold a position of a chief executive, the appointing authority shall consider matters including, but not limited to the following:- (i) Whether the person is or has been subject to any adverse findings or any settlement in civil/criminal proceedings particularly with regard to investments, formation or management of a company or body corporate, or the commission of financial business misconduct, fraud, financial crime, default in payment of taxes or statutory dues, etc.; (ii) Whether the person is or has been removed/dismissed in the capacity of an employee, director/chairman or from a position of trust, fiduciary appointment or similar position because of issues arising on account of his misconduct; (iii) Whether the person is or has, directly or indirectly, i.e. through his spouse or minor children, been engaged in any business which is of the same nature as and directly competes with the business carried on by the company of which he is the chief executive or by a subsidiary of such company; (iv) Whether the person has contravened any of the requirements and standards of a regulatory body, professional body, government or its agencies; (v) Whether the person, or any business in which he has a controlling interest or exercises significant influence, has been disciplined, suspended or reprimanded by a regulatory or professional body, a court or tribunal, whether publicly or privately; (vi) Whether the person has been engaged in any business practices which are deceitful, oppressive or otherwise improper (whether unlawful or not), or which otherwise reflect discredit on his professional conduct; (vii) Whether the person has been associated as a partner or director with a company, partnership or other business association that has been refused registration, authorization, membership or a license to conduct any trade, business or profession, or has had that registration, authorization, membership or license revoked, withdrawn or terminated; (viii) Whether the person has been a director, partner or chief executive of any company, partnership or other business association which is being or has been wound up by a court or other authority competent to do so within or outside Pakistan, or of any licensed institution, the license of which has been revoked under any law; (ix) Whether the person is free from any business or other relationship which could materially pose a conflict of interest or interfere with the exercise of his judgment when acting in the capacity of a director or chief executive or member of a governing body which would be disadvantageous to the interest of the public sector company; and (x) Whether the person is a Pakistani citizen or a foreign national or both. (3) Financial Integrity: (a) Financial integrity is demonstrated by a person who manages his own financial affairs properly and prudently. (b) In assessing a person's financial integrity, the appointing authority shall consider all relevant factors, including but not limited to the following: (i) Whether such person's financial statements or record including wealth statements or income tax returns or assessment orders are available; (ii) Whether the latest Credit Information Bureau report of the person shows no overdue payments or default to a financial institution; Provided that such a person will be treated as a defaulter if he has failed to repay his loan exceeding one million rupees to a financial institution or is a defaulter of a stock exchange. (iii) whether the person has been and will be able to fulfill his financial obligations, whether in Pakistan or elsewhere, as and when they fall due; and (iv) Whether the person has been the subject of a judgment debt which is unsatisfied, either in whole or in part, whether in Pakistan or elsewhere. (c) The fact that a person may be of limited financial means does not in itself, affect the person's ability to satisfy the financial integrity criteria. While making appointment of chief executive to public sector company, the appointing authority shall conform to a merit- based selection procedure and shall also give due consideration to the following: (a) Sectoral expertise (b) Organizational awareness; (c) An understanding of the role of the government as a shareholder; (d) Financial literacy and business acumen, irrespective of the professional background; (e) A knowledge of the statutory responsibilities of a chief executive; (f) The capability for a wide perspective on issues; and (g) Leadership qualities."

14. Thus, despite a proper mechanism, having been provided under "the Act" and "the Rules", yet the Government is making appointment on look after and stopgap arrangements. The petitioner, who has hardly performed to act as CEO, was removed in terms of the decision of the Government dated 05.01.2023 and direction was issued for the appointment of the respondent Engr. Arif Mehmood Sadozai as CEO on the same terms and conditions till further orders. Formal notification was issued on 12.01.2023. He was also assigned to look after the charge of the post of CEO PESCO, as a stopgap arrangement, purely on temporary basis, with immediate effect and until further orders. Thus, without adhering to the mandatory provisions of law, again such appointment is made.

15. Recently, the apex Court in the case titled "Secretary to Government of the Punjab, Communication and Works Department, Lahore and others v. Muhammad Khalid Usmani and others (2016 SCMR 2125)", while dealing with similar situation, held as under:- "we have noted with concern that the device of officiating promotion, ad hoc promotion/ appointment or temporary appointment etc. is used by Government Departments to keep civil servants under their influence by hanging the proverbial sword of Damocles over their heads (of promotion 'on officiating basis' liable to reversion). This is a constant source of insecurity, uncertainty and anxiety for the concerned civil servants for motives which are all too obvious. Such practices must be seriously discouraged and stopped in the interest of transparency, certainty and predictability, which are hallmarks of a system of good governance. As observed in Zahid Akhtar v. Government of Punjab (PLD 1995 SC 530) "a tamed subservient bureaucracy can neither be helpful to the Government nor it is expected to inspire public confidence in the administration".

16. In the case titled, "Federation of Pakistan v. Rais Khan (1993 SCMR 609)", the apex Court has held as under:- "It is common knowledge that in spite of institution of ad hoc appointments unfortunately being deeply entrenched in our service structure and the period of ad hoc service in most cases running into several years like the case of the respondent (8 years' ad hoc service in BPS-17), ad hoc appointees are considered to have hardly any rights as opposed to regular appointees though both types of employees may be entrusted with identical responsibilities and discharging similar duties".

17. In the case titled, "Jaffar Ali Akbar Yousafzai v. Islamic Republic of Pakistan (PLD 1970 Quetta 115)", it was observed as follows:- "when continuous officiation is not specifically authorized by any law and the Government/competent authority continues to treat the incumbent of a post as officiating, it is only to retain extra disciplinary powers or for other reasons including those of inefficiency and negligence, e.g. failure on the part of the relevant authorities to make the rules in time, that the prefix "officiating" is continued to be used with the appointment and in some case for years together".

18. Similarly, the Hon'ble Supreme Court of Pakistan in the case titled, "Pakistan Railways v. Zafarullah (1997 SCMR 1730)" held that "appointments on current or acting charge basis are contemplated under the instructions as well as the Rules for a short duration as a stopgap arrangement in cases where the posts are to be filled by initial appointments. Therefore, continuance of such appointees for a number of years on current or acting charge basis is negation of the spirit of instructions and the rules. It is therefore, desirable that where appointments on current or acting charge basis are necessary in the public interest, such Appointments should not continue indefinitely and every effort should be made to fill posts through regular appointments in shortest possible time".

19. The Hon'ble Supreme Court of Pakistan in the case titled, "Province of Sindh and others v. Ghulam Fareed and others (2014 SCMR 1189)", it was held as under:- "Appointment of an officer of a lower scale on higher post on current charge basis is made as a stop-gap arrangement and should not under any circumstances, last for more than 6 months. This acting charge appointment can neither be construed to be an appointment by promotion on regular basis for any purposes including seniority, nor it confers any vested right for regular appointment. In other words, appointment on current charge basis is purely temporary in nature or stop-gap arrangement, which remains operative for short duration until regular appointment is made against the post."

20. In Human Rights case No.104 of 1992, it was held by the Hon'ble Supreme Court of Pakistan as under:- "While inquiring into various complaints of violation of Fundamental/Human Rights, it has been found that the Federal Government, Provincial Governments, Statutory Bodies and the Public Authorities have been making initial recruitments, both ad hoc and regular, to posts and offices without publicly and properly advertising the vacancies and at times by converting ad hoc appointments into regular appointments. This practice is prima facie violative of Fundamental Right (Article 18 of the Constitution) guaranteeing to every citizen freedom of profession".

21. Similarly, in the case titled "G.M Lahore and another v. Zafarullah, Assistant Electrical Engineer and others (1997 SCMR 1730)", the Hon'ble Supreme Court of Pakistan has held as under:- "We would like to observe that the appointments on current or acting charge basis are contemplated under the instructions as well as the Rules for a short duration on a stop-gap arrangement in cases where the posts are to be filled by initial appointments. Therefore, continuance of such appointees for a number of years on current or acting charge basis is negation of the spirit of the instructions and the Rules. It is, therefore, desirable that where appointment on current or acting charge basis are necessary in the public interest, such appointments should not continue indefinitely and every effort should be made to fill posts through regular appointments in shortest possible time. A copy of the judgment be sent to Establishment Division for future guidance."

22. Recently, a Larger Bench of the Hon'ble Lahore High Court in the case titled, "Rab Nawaz Dhadwana, Advocate and others v. Rana Muhammad Akram, Advocate and others (PLD 2014 Lahore 591)", has observed as under:- "In this instance, the Provincial Government seems to have encouraged a culture of adhocism in making constitutional appointments, which has no constitutional recognition. Adhocism is an organizational philosophy or style characterized by (1) aversion to planning, tendency to respond only to the urgent, as opposed to the important, focus on 'firefighting,' than on establishing systems and procedures through goal setting and long term planning. Adhocism is a mindset or a tendency to establish temporary, chiefly improvisational policies and procedures to deal with specific problems and tasks. Adhocism is a malaise, which exploits the system and weakens institutions and is, therefore, abhorred."

23. Apparently, it seems that the appointment of the petitioner as well as the respondent Engr. Arif Mehmood Sadozai has not been made in accordance with law nor can it be excepted from such short-term appointees that they can focus on goal setting and long term planning to make the company as a profitable organization rather as held by the Larger Bench of the Hon'ble Lahore High Court that "adhocism is a mindset or a tendency to establish temporary, chiefly improvisational policies and procedures to deal with specific problems and tasks. Adhocism is a malaise, which exploits the system and weakens institutions and is, therefore, abhorred". We have seen in numerous cases that such temporary arrangements exploit the situation and such officers are playing at the hands of political figures in order to prolong their such temporary position, instead to focus on the long term planning and policy decisions.

24. In the given circumstances, we find that assigning the responsibility of the post of CEO through such temporary arrangements will never be helpful rather would worsen the situation further. It is by now well settled that where the law provides a thing to be done in a particular manner then it must be done in that manner or not at all. The above referred provisions of "the Act", "the Rules" and "Guidelines" having specifically provided the procedure and manner in which the post of CEO of Public Sector Company is to be filled, as such we deprecate this practice of adhocism, appointments on look after or acting charge basis.

25. The appointment on acting charge basis or stopgap arrangement is usually made pending process of a regular incumbent, however, we have been informed that ever since the appointment of the petitioner in September, 2022 and even after the appointment of respondent Engr. Arif Mehmood Sadozai as CEO, till date no such process has ever been initiated. Such appointments are, thus, violative of the principle of appointment on stopgap arrangement.

26. In view of the above, we direct that the appointment to the office of CEO as provided under "the Act", the Rules", "the Guidelines" and "Act of 2023", be made within a period of two months positively. In case, the appointment to the said post has not been made, the appointment of respondent Engr.Arif Mehmood Sadozai shall be no longer valid thereafter.

27. This writ petition along with COC No.32-P/2023 and CMS Nos.603, 506, 558, 438 and 244-P/2023 stand disposed of in the above terms. JK/220/P Order accordingly.