PLC(CS) 2000

2000 PLP (C (PLC(CS))

JAVED IRFAN and others Versus FEDERATION OF PAKISTAN through Secretary,

Jurisdiction / Court
Federal Service Tribunal
Decided Date
Appeals Nos. 46-K, 53-K, 54-K, 58-K and 62-K of 1998, decided on 6th July, 1998.
Honorable Judges
Muhammad Raza Khan and Noor Muhammad Magsi, Members
Case Reference Summary (AEO Optimized)
Citation 2000 PLP (C (PLC(CS))
Forum / Court Federal Service Tribunal
Bench Members Muhammad Raza Khan and Noor Muhammad Magsi, Members
Parties JAVED IRFAN and others Versus FEDERATION OF PAKISTAN through Secretary,
Primary Law Banking Companies Ordinance (LVII of 1962)
💡 Quick Legal QA & Summary / سوال و جواب خلاصہ
Q1: What are the key laws and sections cited in 2000 PLP (C (PLC(CS))?

This judgment primarily cites: Banking Companies Ordinance (LVII of 1962) as referenced in Pakistani case law index.

Q2: Which judicial bench decided the case 2000 PLP (C (PLC(CS))?

The case was heard and decided by the Federal Service Tribunal bench comprising: Muhammad Raza Khan and Noor Muhammad Magsi, Members.

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

Cite this legal precedent as: 2000 PLP (C (PLC(CS)) (JAVED IRFAN and others Versus FEDERATION OF PAKISTAN through Secretary,). Read the full summary and cross-referenced laws free on Pakistan Law Portal.

Laws Cited

Banking Companies Ordinance (LVII of 1962)

Representation

  • Kanwar Mukhtar for Appellants.
  • Gulzar Ahmed for Respondents.
  • Date of hearing: 2nd July, 1998.

Headnotes / Summary

S. 47(5)

Amalgamation of Bank

Entitlement of retained employee of Bank to facilities

M Bank having been amalgamated -with N Bank, civil servants who were retained employees of defendant M Bank claimed all benefits admissible to employee of transferee Bank N right from effective date of amalgamation of M Bank where they were previously working-- Claim of civil servants that they were entitled to all benefits admissible to employees of transferee Bank right from effective date of amalgamation was misconceived, because according to provisions of Banking Companies Ordinance, 1962, civil servants being retained employees were entitled for period of three years from effective date of amalgamation to remuneration and terms and conditions as were applicable to them in previous Bank and they could not be in any case subjected to any terms. and conditions less favourable to them than those they were enjoying prior to said date-- Transferee Bank, however, within a period of three years for effective date, was under obligation to extend civil servants (retained employees) terms and conditions of employees of corresponding rank and status of transferee Bank subject to scrutiny of their qualification and experience

Retained employees were to retain their previous terms and conditions whereafter they were to be treated at par with employees of transferee Bank. S.M. Raza Zahid Section Officer, Ministry of Finance and M. Shibli for State Bank of Pakistan.

Judgment & Decree

(ii) the Transferee Bank shall pay orgrant not later than the expiry .of the aforesaid period of three years, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status of the Transfree Bank subject. to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the Transferee Bank: Provided further that if in any case under clause (ii) of the first provides any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualification and experience of the other employees of correspondence rank or status of the transferee bank, the doubt or difference shall be referred to the State Bank whose decision thereon shall be final;" '

4. The cumulative effect of the Article 7.01 read with the provisions of the Ordinance is as follows:‑‑-- (a) The retained employees shall become .the employees of the Transferee Bank on the effective date. (b) The retained employees shall be entitled to the same remuneration and the same terms and conditions of service to which they were entitled immediately before the effective date for a period of three years. (c) The Transferee Bank shall fix remuneration and other terms and conditions of service of the employees as applicable to other employees of corresponding rank and status of the Transferee Bank subject to the qualification and experience of the said employees being the same or equivalent, within a period of three years. (d) In cases of dispute with regard to qualification and experience the matter shall be referred for the arbitration to the State Bank of Pakistan.

5. This simply means that for period of three years from the effective date, the employees were entitled to .the remuneration and terms and conditions as were applicable to them in the previous Bank prior to the effective date and they could not be in any case subjected to any terms and conditions less favourable to them than those they were enjoying prior to the said date. However, within a period of three years from the effective date the Transferee Bank was under obligation to extend the retained employees the terms and conditions of the employees of the corresponding Bank and status of the Transferee Bank subject to the scrutiny of qualification and experience. It appears that there was a misconception with the appellants that they were entitled to the terms and conditions of the employees of the Transferee Bank rightly from the effective date. This does not appear to be true interpretation of the legal position. For a period of three years they were to retain their previous terms and conditions whereafter they were to be treated at par with the employees of the Transferee Bank.

6. At the time of final arguments the appellants produced a letter issued by the respondent No.3 on 30‑5‑1998 stating as follows: "AMALGAMATION OF MEHRAN BANK Reference is made to the Scheme of Amalgamation of Mehran Bank Limited in National Bank of Pakistan and the provisions retained employees made therein, in pursuance whereof you have been paid and allowed by National Bank of Pakistan up to 31‑12‑1997 remuneration terms and conditions of service as was applicable to you immediately before the effective date. The competent Authority has decided to grant you the same remuneration and the same terms and conditions of service as are applicable to the other employees of the National Bank of Pakistan of corresponding rank and status keeping in view your qualification and experience with effect from 1‑1‑1998. Your remuneration and terms and conditions are as follows:‑

1. Your pay fixation is being advised separately in NBP scale of Rs.2260‑175‑5760.

2. You will be paid monthly allowances as prescribed by the National Bank of Pakistan or the Wage Award from time to time in accordance with the established/Rules/Regulations/Laws in force and applicable to the Bank's employees.

3. Your service, seniority, retirement and retirement benefits in the National Bank of Pakistan will be counted from 1‑1‑1998.

4. Your provident fund/gratuity, if any, as per rules of Mehran Bank Limited calculated up to 31‑12‑1997 will be refunded to you.

5. Your service in the National Bank of Pakistan will be governed by the National Bank of Pakistan (Staff) Service Rules in force and as amended from time to time and rules as are prescribed by Wage Award and applicable to the Bank's employees and evaluation criteria and personnel policies determined by the Board.

6. You are required to complete service formalities as per the National Bank of Pakistan (Staff) Service Rules in force and inter alias‑‑ I. Sign service agreement with the bank as per National Bank of Pakistan Rules; II. become member of Bank's Provident and Pension Funds in accordance with the rules of National Bank of Pakistan in force and as amended from time to time.

7. You may be required to serve at any time of any of Bank's office in or outside Pakistan."

7. Thus, within the prescribed period of 3 years the appellants have been given the terms and conditions of the equivalent employees of the Transferee Bank and hence the legal requirement was satisfied. However, this latest development of 30‑5‑1998 could be agitated separately in accordance with the law as referred to hereinabove, if any of the employees is treated adversely. However, so far as the position prevailing on the date of filing of appeal on 10‑1‑1998 is concerned, the same appears to have been, rectified by the letter dated 30‑5‑1998 and thus, the grievance stands E redressed for the time being.

8. It may also be stated that during the said period of three years if any financial benefit, bonus etc. was given to the appellants by the order of the competent Authority the same cannot be recovered in accordance with the doctrine of locus poenitentiae.

9. With these observations we hold that the grievance of the appellants stands redressed and thus, the appeals become infructuous and subject to the above observations, are disposed of accordingly. No order as to costs. Parties be informed.