2019 PLP (C (PLC(CS)N)
HAMEED ULLAH and 8 others Versus STATE LIFE INSURANCE CORPORATION OF PAKISTAN and 5 others
| Citation | 2019 PLP (C (PLC(CS)N) |
| Forum / Court | Peshawar High Court (Mingora Bench) |
| Bench Members | Mohammad Ibrahim Khan and Muhammad Nasir Mahfooz, JJ |
| Parties | HAMEED ULLAH and 8 others Versus STATE LIFE INSURANCE CORPORATION OF PAKISTAN and 5 others |
| Primary Law | (a) Civil service, (b) Constitution of Pakistan |
Q1: What are the key laws and sections cited in 2019 PLP (C (PLC(CS)N)?
This judgment primarily cites: (a) Civil service, (b) Constitution of Pakistan as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2019 PLP (C (PLC(CS)N)?
The case was heard and decided by the Peshawar High Court (Mingora Bench) bench comprising: Mohammad Ibrahim Khan and Muhammad Nasir Mahfooz, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2019 PLP (C (PLC(CS)N) (HAMEED ULLAH and 8 others Versus STATE LIFE INSURANCE CORPORATION OF PAKISTAN and 5 others). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Muhammad Yar Malezai for Petitioners.
- Muhammad Ikram Khan and Hussain Ali Deputy Attorney-General on behalf of the Federation for Respondents.
Headnotes / Summary
State Life Insurance Corporation of Pakistan
Award of bonus to employees on the basis of performance
Undertaking by the employees to return the bonus if target given by employer not achieved by them
Effect
Petitioners-employees were paid bonus on the basis of their performance by the employer
Employer Corporation thereafter passed order for recovery of said bonus on the ground that conditions of its policy were not fulfilled by the employees
Contention of petitioners was that impugned order was arbitrary, illegal and without lawful authority
Petitioners-employees had assured the employee Corporation that they would return the bonus if they did not qualify the criteria
Employees had bound themselves for refund and adjustment of the bonus already received if they could not achieve the targets
Said undertaking had estopped the employees from filing the constitutional petition
Employer Cooperation had prerogative to withdraw the scheme or amend at any time at the discretion of Management
Decision of Management of the Corporation was final and binding on all concerned
Matter with regard to factual controversy could not be entertained by the High Court in Constitutional jurisdiction
Employees were advised by the High Court that if they prefer to be beneficiary of the scheme and to earn bonus then they should work hard
Constitutional petition was dismissed in circumstances. Sardar Arshid Hussain and others v. Mst. Zenat-un-Nisa and another 2017 SCMR 608; Malik Naz v. Board of Governors through Secretary and 4 others 2017 CLC 256 and Munda Eleven Cricket Club v. Federation of Pakistan and 4 others PLD 2017 Lah. 802 rel.
Art. 199
Constitutional jurisdiction of High Court
Scope
High Court could not entertain the matter with regard to factual controversy. Sardar Arshid Hussain and others v. Mst. Zenat-un-Nisa and another 2017 SCMR 608; Malik Naz v. Board of Governors through Secretary and 4 others 2017 CLC 256 and Munda Eleven Cricket Club v. Federation of Pakistan and 4 others PLD 2017 Lah. 802 rel.
Judgment & Decree
MOHAMMAD IBRAHIM KHAN. J.
The Petitioners herein are the officers working in different sectors as Managers, Zonal Auditors and as Executive Officers in the State Life Insurance Corporation of Pakistan. It is a Statutory body/Organization established under the Life Insurance (Nationalization) Order, 1972. Since it has come into being under the Federal and Central legislation, therefore it is a Federal Public Sector Organization.
2. According to Article 14 (Functions of the Corporation), this Corporation referred to the Life Insurance Business. Its functions are:- 1) "subject to the rules, if any, made by the Central Government in this behalf, it shall be the general duty of a Corporation to carry on life insurance businesses, whether in or outside Pakistan, and the Corporation shall so exercise its powers under this Order as to secure that life insurance business is developed to the best advantage of the community. 2) Without prejudice to the generality of the provisions contained in Clause (1) but subject to the other provisions contained in this Order, a Corporation shall have power. a) To carry on capital redemption business, annuity certain business and reinsurance business in so far as such reinsurance pertains to life insurance business; b) To invest the funds of the Corporation in such manner as the Corporation may think fit and to take all such steps as may be necessary or expedite for the protection or realization of any investment, including the taking over of and administering any property offered as security for the investment until a suitable opportunity arises for its disposal; c) To acquire, hold and dispose of any property for the purpose of its business; d) To transfer the whole or any part of life insurance business carried on outside Pakistan to any other person or persons, if the interest of the Corporation it is expedient so to do; e) To advance or lend money upon the security of any movable or immovable property or otherwise; f) To borrow or raise any money in such manner and upon such security as the Corporation may think fit; g) To carry on either by itself or through any subsidiary any other business in any case where such other business was being carried on by a subsidiary of an insurance whose life insurance business has been transferred to and vested in the Corporation under this Order; h) To carry on any other business which may seem to the Corporation to be capable of being conveniently carried on in connection with its business and calculated directly or indirectly to render profitable the business of Corporation; and i) To do all such things as may be incidental or conducive to the proper exercise of any of the powers of the Corporation."
3. The State Life Insurance Corporation is provided with the initial capital by the Central/Federal Government and its main task is to carry out life insurance business for an individual or Group Life. According to the provision of Article 14 of the Life Insurance (Nationalization) Order, 1972 as referred to there are categories of various Departments and Divisions like that of Real Estate, the Investment, Actuarial and the Marketing Divisions. It's basically the Marketing Division which performed the functions of its responsibility for the creativity of the funds. While further Sub-Divisions leads to the cadre of officers and ministerial staff cadre who runs the affairs administratively for the progress to be achieved from time to time. In nutshell wherever there is a staff worker who either be associated with the Marketing Division or working for gain in Real Estate or other officers all are to be held responsible for the achievement of a common goal, thereby are interlinked.
4. It is every year and it continued payment of the yearly bonus, the employees of all the categories get their award whenever there is the occasion of Eid-ul-Fithir and Eid-ul-Adha coming before the close of every financial business year of the Corporation. This is subject to rendering of undertakings by all the employees of the cadre of officers. In the year 2014 the Corporation with the approval of Finance Division of the Federal Government declared the award of bonus and thereby the Petitioners were paid bonuses in advance at the rate of two basic pay. One of the basic pay was paid at the occasion of Eid-ul-Fithir and another was paid on Eid-ul-Adha. Later the Respondents who are the high ups of the State Life Insurance Corporation of Pakistan issued an office order bearing No. P&GS/PO/014/20l7 dated 13.01.2017 for the recovery of the awarded bonuses at the same rate which were paid and the reason was advanced that the requisite conditions of its policy were not fulfilled. According to the office order No. PL-24(104)/PBB-2012, 2013 and 2014 dated 10.12.2014 this action of the Respondents is stated to be based on malafide as all the other parts of the country the officers of similar rank have never been issued office orders for the recovery of paid bonuses. Thus, on the grounds taken herein from ground (a) to (j) all sub-submissions, there is perspective prayer for acceptance of this writ petition for the following reliefs:- a) The impugned office Order No.P&GS/PO/014/2017 dated 13.01.2017 and up to the extent of conditions office Order No.PL-24(014)/PBB-2012, 2013 and 2014 may kindly be annulled and set aside being arbitrary, illegal, unjustified, without lawful authority, ultra vires the Constitution, law and Regulations and void ab initio. b) Directing the Respondents to grant the Petitioners with bonus @ 3.5 basic pay with no conditions likewise that of the Staff Workers. Any other relief though not specifically prayed for, which is deemed it and appropriate in the circumstances may also be very graciously granted for the ends of justice.
5. After the Respondents were put on notice, they were directed to submit their respective comments. Accordingly the detailed comments have been furnished along with Annexures which are available on the record.
6. Having heard arguments of learned counsel for the parties and learned DAG appearing on behalf of the Federation, available record with their valuable assistance gone through.
7. Primarily, the Principal Office of the State Life Building at Karachi through its Division P&GS on 18.01.2002 under the subject "Performance Based Bonus Plan For the Year 2002 For Officers of State Life Insurance Corporation of Pakistan", the Management was pleased to announce Performance based Bonus Plan for the year 2002 and later this plan continued, whereby the Petitioners were benefited in the year 2014. However, under the theme of the Scheme where the Bonuses were to be awarded on the basis of performance of achievement of officer/Zones and Divisions and where there is profitable business by the Corporation the Bonuses will be ensured to the maximum number of officers, besides good workers will also get premium on their performance. The aim of the Scheme was to develop (competitive go) among the officers so that they have to do their best in their relevant fields. Similarly, this proposed plan was designed to develop team spirit amongst the employees. It will create an interest as promotion of the business of the Corporation and all the officers and employees will work as a team for motivation of all the colleagues for better and enhanced performance. It was also an award that all regular and confirmed officers of the Corporation from the grade of Executive Officers to Executive Directors excluding the Area Managers were entitled to earn bonuses as per revised scheme. There was however put a bar that in case there is required any clarification in this behalf, the decision of the Principal Office will be final and binding on all the officers and employees. Even the scheme may be withdrawn or amended by the principal Office at any time at the discretion of the Management.
8. It is but clear in very lucid words where the impugned office order No.P&GS/PO/014/2017 dated 13.01.2017, whereby the extent of conditions office order No. PL-24(104)/PBB-2012, 2013 and 2014 dated 10.12.2014 was issued when under the extent of conditions the targets were not achieved and at the time when the audit was carried out. Whether this office order is arbitrary, illegal, unjustified, without lawful authority, ultra vires the Constitution, Law and Regulations and to be held void-ab-initio and on its basis the Respondents can be prohibited from the recovery of bonuses having earlier paid to the Petitioners in the year 2014 and onwards. Whether further the Respondents can be directed to grant the Petitioners bonus @ 3.5 basic pay with no conditions likewise that of the staff workers. Absolutely, at the time when this scheme was introduced by that time all the officers and employees of the Corporation were placed under a mandatory provision of undertakings, which so far has been furnished by its due date, whereby almost all the undertakings are in ditto/verbatim proforma. The Management when pleased in grant of one month basic pay in advance against the based bonuses of 2017 on the occasion of Eid-ul-Fithir 2017 and later forthcoming Eid-ul-Adha, it has been assured to the Corporation that where the bonuses have been paid and it ought to be returned and the amount to be recovered provided that each of the Petitioner do not qualify as per the criteria when has received the amount of advance bonus, the same will be adjusted and refunded from the salary of each Petitioner. In view of the undertaking being furnished by each of the Petitioner which is not denied whenever the business has not been achieved to the mark as required to the Corporation. Each of the Petitioner has himself bound his person for the refund and adjustment of the bonuses already received on the eve of Eid-ul-Fithir and Eid-ul-Adha from each Petitioner salary.
9. This undertaking by each Petitioner stands as a hurdle and by this act of furnishing the undertaking estopped the Petitioners from filing of the petition in hand. Even otherwise where there is a clarification and the recovery has been directed by the decision of the Principal Office of the State Life Insurance Corporation of Pakistan it is final and binding on all the concerned. Besides, it is always the prerogative of the Principal Office of the Corporation ibid to even withdraw the scheme or amend it at any time at the discretion of the Management.
10. We cannot go into the question as to how much value in the sum of rupees to be determined from the business has been gained as it may be confidential which has not been brought on record and the overall business in the year 2014 and onwards when the bonuses have been granted, if at all any figure is required of its total business the matter would pertain to factual controversy which is not the domain of this Court. If any authority is needed, we can refer the judgment of the Hon'ble Supreme Court of Pakistan cited as 2017 SCMR 608 "Sardar Arshid Hussain and others v. Mst. Zenat-un-Nisa and another, wherein it has been held:- Factual controversy
Finding relating to a factual controversy need not be gone into by the Supreme Court unless and until a substantial defect in reading oral or documentary evidence was pointed out. This view has further been affirmed in a case reported as 2017 CLC 256 [Peshawar] "Malak Naz v. Board of Governors through Secretary and 4 others". The relevant citation of the ibid judgment speaks of:
Art. 199
Constitutional jurisdiction of High Court
Scope--Factual controversy could not be resolved in constitutional jurisdiction. On the same analogy reliance can be further placed on PLD 2017 Lahore 802 Munda Eleven Cricket Club v. Federation of Pakistan and 4 others, wherein it has been opined:
Art. L99-Constitutional jurisdiction of High Court-Scope
Factual controversy/question of facts--Authenticity of documents
Scope
Questions as to authenticity of documents involved a factual controversy as such authenticity stood on the touchstone of evidence which the High Court under its Constitutional jurisdiction could not record--Scope of the Constitutional jurisdiction of High Court was dependent on questions which were devoid of factual controversies.
11. Like good officers and employees of the establishment of State Life Insurance Corporation of Pakistan, the Petitioners are advised that if at all they prefer to be beneficiary of this scheme and to earn bonuses likely as good workers have to get premium, they have to work hard, repose in the confidence of the general public to invite them to sweeten the kitty by contributing more and more investment than rather to file such like petition to discourage this scheme where the powers exclusively rest with the Principal Office to even abandon it for forever.
12. In view of what has been discussed above, this writ petition has got no value of its credence, which is hereby dismissed. ZC/186/P Petition dismissed.