PLC 1993

1993 PLP 120 (PLC)

C. ITOH & CO. LTD., KARACHI Versus MUHAMMAD SHAHID KHAN

Jurisdiction / Court
Labour Appellate Tribunal Sindh
Decided Date
Appeal No. KAR‑138 of 1992, decided on 30th September, 1992.
Honorable Judges
Agha Ali Hyder, Appellate Tribunal
Case Reference Summary (AEO Optimized)
Citation 1993 PLP 120 (PLC)
Forum / Court Labour Appellate Tribunal Sindh
Bench Members Agha Ali Hyder, Appellate Tribunal
Parties C. ITOH & CO. LTD., KARACHI Versus MUHAMMAD SHAHID KHAN
Primary Law Industrial Relations Ordinance (XXIII of 1969)‑‑‑
💡 Quick Legal QA & Summary / سوال و جواب خلاصہ
Q1: What are the key laws and sections cited in 1993 PLP 120 (PLC)?

This judgment primarily cites: Industrial Relations Ordinance (XXIII of 1969)‑‑‑ as referenced in Pakistani case law index.

Q2: Which judicial bench decided the case 1993 PLP 120 (PLC)?

The case was heard and decided by the Labour Appellate Tribunal Sindh bench comprising: Agha Ali Hyder, Appellate Tribunal.

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

Cite this legal precedent as: 1993 PLP 120 (PLC) (C. ITOH & CO. LTD., KARACHI Versus MUHAMMAD SHAHID KHAN). Read the full summary and cross-referenced laws free on Pakistan Law Portal.

Laws Cited

Industrial Relations Ordinance (XXIII of 1969)‑‑‑

Representation

  • Mahmood Abdul Ghani, Representative for Appellants.
  • Abdul Majeed, Representative for Respondent.
  • Date of hearing: 18th August, 1992.

Headnotes / Summary

‑‑‑‑S.25‑A‑‑‑Dismissal of workman for misconduct‑‑‑Show‑cause notice though issued to workman but no inquiry was conducted to prove misconduct‑‑ Misconduct having not been lawfully established, reinstatement in service as ordered by Labour Court was just and proper.‑‑Impugned order whereby workman was ordered to be reinstated in service was thus, not open to exception‑‑‑Employer, however, if so advised, could hold domestic enquiry against workman, on charge of misconduct. Glaxo Laboratories (Pakistan) Ltd. v. Pakistan and another 1962 PLC 362 rel,

Judgment & Decree

Y. TAMURA Asstt. General Manager (Administration)"

5. The respondent gave a reply to the same denying the allegation made against him. On 27‑9‑1990, he received another letter which ended with the following words:‑ "You had already been issued with a show‑cause notice on September 13, 1990 for causing wilful loss and damage to the Company. Management have lost confidence in you and cannot assign any other car to you. For loss of confidence we have decided to terminate your services on payment of one month's salary in lieu of notice with immediate effect. You are directed to collect your legal dues on any working day. (Sd.) Y. TAMURA Asstt. General Manager" The respondent had sent the grievance notice which was replied to and finding no satisfaction a petition was filed under section 25‑A of I.R.O., 1969, praying for reinstatement.

6. In the reply statement it was alleged that the appellants were only a Liaison Office and not undertaking any industrial or commercial activities. Actually they did not have the permission to do so from the Ministry of Industries and Natural Resources of the Government of Pakistan; As there was no question of making any profit it was averred that the provisions of the Standing Orders Ordinance were not applicable. The rest of the allegations came to be denied.

7. The respondent was his own witness and Mr. I.T. Ishiguro, General Manager of the Company in Pakistan appeared on behalf of the appellants.

8. It appears that the challenge to the jurisdiction of the Court was not pressed and the termination of the respondent from service was found to be not legal. Therefore the Labour Court ordered the petitioner's reinstatement in service with full back benefits.

9. The contention assailing the maintainability of the petition was repeated in the Memorandum of appeal. However, it was again not pressed during the arguments. The record indicates that the appellants are maintaining a fleet of cars and they remained totally reticent about the number of their employees. All they had stated was that they were not doing any profit making business. Mr. Ishiguro however stated that "it is the major trading company of Japan operating in Pakistan." The company has got a net‑work of offices worldwide and a booklet also was produced.

10. In the light of the view I am taking I will desist from making any comment as to whether there was any negligence or as averred by the appellants any contributory negligence in the loss of a car worth Rs.14,00,

000. The contention of the appellant was that it was a case of termination simpliciter and they had given a reason and also offered to pay a month's pay in lieu of notice and other dues which could be available in his favour.

11. In their letter, dated 9‑11‑1990 the appellants have mentioned that "they have lost confidence in the respondent and cannot possibly give him any other car." He had also been charge‑sheeted though they chose to mention that it was only a letter of termination of employment.

12. Mr. Mahmood Abdul Ghani, learned representative for the appellants also took this theme of lack of no confidence and referred to two judgments from the Supreme Court of India in which it was held, that once the employer had lost his confidence in his employee and terminated his services the order was immune from challenge even if erroneous. If the termination of employment was wrongful he could be compensated but not reinstated. The citations are Civil Appeal No. 1339 of 1967 ‑‑ All India Corporation v. VA. Rebellow and another ‑and Civil Appeal No. 2127 of 1969 ‑‑Hindustan Steel Limited v. Roy (A.K.) and others. However, these are cases under the Industrial Disputes Act of 1947 wherein sections 33 and 33‑A of the said Act were construed. Reference to these cases will be, in my humble view, singularly inapt, looking to the law as it is at present. That, however, is beside the point.

13. The position confronting the appellant is that the services of the respondent had been terminated apparently under Standing Order 12(3) though a charge‑sheet had been issued to him earlier. The respondent had remained talking about misconduct all through the proceedings. And there lies the rub.

14. It was held in the case of Glaxo Laboratories (Pakistan) Ltd. v. Pakistan and another 1962 PLC 362 as cited by Mr. Abdul Majeed, learned representative for the respondent, that if the termination of service was specifically for misconduct but however a month's pay was given m lieu of notice, such payment does not change the original reason for termination of service. It was also observed that misconduct not having been lawfully established reinstatement in service was proper. There are a number of authorities in which it has been held that termination should be for reasons other than misconduct.

15. As the matter stands the impugned order is not open to exception. I will, therefore, dismiss the appeal. It will be open to the appellant, if so advised, to hold a domestic enquiry against the respondent, on the charge of misconduct. A.A./2099/Lb.S Appeal dismissed.