2006 PLP 1059 (SCMR)

MUNIR A. SHEIKH, J.

This appeal by leave of the Court is directed against judgment, dated 3-3-1998 of the Sindh High Court, Karachi whereby Constitutional petition filed by the appellants has been dismissed. (2). The dispute relates to the payment of profits accrued on the amount allocated to each establishment/company out of the Workers' Welfare Fund (hereinafter referred to as the Fund) constituted under section 3 of the Companies Profits (Workers' Participation) Act, 1968 (hereinafter referred to as the Act). The case of the appellants was that under paragraph 4(d) of the Schedule attached with the Act additional amount, after payment to the workers from the principal amount of the Fund is to be credited to the Government and hundred per cent profits accrued on the total amount was to be distributed among the workers as per paragraph 10 of the said Schedule. (3). The appellants claimed that profit accrued on the allocated fund from 1982-83 to 1989-90 was Rs.35,45,594 on account of interest but the same, instead of distributing among the workers, was wrongly credited to the Government.. A prayer was made in the Constitutional petition for refund of the said amount to the appellant. (4). Learned Judges of the High Court came to the conclusion that the appellant was guilty of non-compliance with the mandatory provisions of the Act as to establishment of a Board of Trustees, which was required to be constituted consisting of two nominees of the management and two nominees of the workers. In case there was a C.B.A. of the company nomination of two representatives of the workers was to be made by the said C.B.A. and in case there was no C.B.A. representatives of the workers were to be elected through elections. The company was required to intimate to the Government names of four members of the Board of Trustees. It is also required that there should be a Secretary of the Board of Trustees. The said Board was responsible to distribute the above fund allocated to the unit/company among the workers and, if any amount so allocated had been left out, it was to be credited to the Government. The dispute, as observed above, is only with regard to the profits accrued on the said allocated fund, which no doubt under the provisions of the Schedule, was to be distributed among the workers of the unit/company, to which the fund was allocated but the same according to the appellants had been credited to the Government. (5). The High Court was justified in law in not granting relief of the refund of the said amount at present on account of non-compliance of the provisions as to constitution of the Board of Trustees and intimation of . their names to the Government and other formalities as mentioned in the judgment under appeal but the fact remains that the amount, profits accrued on the amount is to be paid to the workers of the company after compliance with the provisions of law. (6). For the foregoing reasons, this appeal is hereby partly accepted and the judgment impugned is modified to the extent that on compliance by the appellant No.1 with the provisions of the Act of constitution of the Board of Trustees, as pointed out in the impugned judgment of the High Court and intimation to the Federal Government, the amount of profit credited to the Government shall be paid to the said Board of Trustees for distribution to the workers of the appellant No.1-Company. As to what is the exact amount of profit, if there is a dispute, the same shall be settled between the appellant No.1 and Board of Trustees on the one hand and Federal Government on the other hand, after going through the relevant record and accounts. There shall be no order as to costs. M.H./N-9/SC Order accordingly.