2026 PLC 107 FEDERAL-CONSTITUTIONAL-COURT Judicial Precedent

Beneficial legislationScope

Social welfare and beneficial statutes must be construed liberally so as to advance remedy and suppress mischief sought to be remedied

Courts are, therefore, under a Constitutional and legal duty to adopt a purposive, pragmatic, and equitable interpretation which safeguards rights and legitimate expectations of individuals for whose benefit the statute has been enacted

In appropriate cases, interpretative role of Court becomes essential to prevent irreparable loss, undue hardship, and injustice that may otherwise ensue from a rigid, literal, or technical application of the law.

2025 PTD 1448 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN Judicial Precedent

S. 65B as inserted vide Finance Act, 2010 and subsequently amended through Finance Act, 2012Tax credit for investmentWords "extension" and "expansion", addition ofRetrospective effectScopeBeneficial legislationScope

Plea of the taxpayer being that subsequent amendment in S. 65B of the Income Tax Ordinance, 2001 ('the Ordinance 2001') made through Finance Act 2012 whereby words "extension" and "expansion" were added and where tax credit was made allowable (against tax payable including on account of minimum tax and final taxes) carry retrospective effect as a beneficial legislation

Whether beneficial, remedial or curative legislation has a retrospective effect?

Validity

Retroactive legislation , as a general rule, is rightly looked upon with disfavor because of its tendency to be unjust and oppressive; consequently, in the absence of any indication in the statute that the legislature intended for it to operate retroactively, it must not be given retrospective effect

However, where an Act is procedural, declaratory or explanatory or where a statute is passed for the purpose of supplying an obvious omission in a former statute, it is to operate retrospectively, obviously because it does not affect vested rights

The legal position that emerges is that generally beneficial legislation is to be given liberal interpretation, however, for the said legislation to have a retrospective effect, the beneficial legislation must carry curative or remedial content

Therefore, such legislation must either clarify an ambiguity or an omission in the existing law and must, therefore, be explanatory or clarificatory in nature

While beneficial legislation is to be liberally interpreted, in order to advance the beneficent object of the statute, it in no manner means that "beneficial legislation" or "liberal interpretation" necessarily includes or interchangeably means retrospective application of the statute

Unless the legislation is remedial, curative, explanatory or clarificatory, it cannot be interpreted retrospectively merely on the ground that the legislation is generically beneficial in nature

An amendment becomes a part of the original statute and must be read together

While an amendment, being considered as the last expression of the will of the legislature, generally prevails, however, such effect is prospective and would not be given any retroactive construction, overriding effect on prior rights, unless the verbiage of the provision makes such construction necessary

In the present case, there was no ambiguity or anomaly existing in the law, as it stood prior to Finance Act, 2012

Section 65B of the Ordinance 2001 was/ is the section allowing tax credit subject to certain conditions

Amendment in the said S. (65B) vide Finance Act, 2012 simply introduced additions of words "extension" and "expansion" and allowed tax credit against Minimum Tax and payment of tax in Final Tax Regime in S. 65B and that by no means remedy or cure any ambiguity or omission in the law

There is nothing in the language of S. 65B (as amended by Finance Act 2012) to suggest that the amendment is retrospective

The amendment merely enlarges the scope of tax credit to be allowed in case of "extension" and "expansion" (in addition to balancing, modernization and replacement of plot and machinery already installed in an industrial undertaking)

Further, provision under S. 65B provides tax credit to be allowed for the first time on tax payable on account of minimum tax and final taxes payable under the law, which was not in existence in previous tax years; the same being in the nature of a substantive amendment would be prospective, in the absence of any indication to the contrary

Hence, plea of taxpayer to label the given amendments as remedial or curative legislation is misconceived

Thus, the benefit of amendments in S. 65B made through Finance Act, 2012 was not available to the taxpayer / appellant for tax made through Finance Act, 2012 having no retrospective application

Commissioner Inland Revenue (Appeals) rightly held the amendments in S. 65B through Finance Act, 2012 as of prospective having no retrospectivity

Appeal , filed by Taxpayer/ Company, was dismissed.

2023 PLC(CS)N 5 PESHAWAR-HIGH-COURT Judicial Precedent

Appointment against reserved quotaBeneficial legislationRetrospective effectScopePetitioner was nine years of age when his father, while serving as a teacher, died in the year 2000

Competent authority declined appointment to the petitioner on the ground that the policy-in-question was for those whose fathers had died after 1st July, 2005 (Prime Minister Assistance Package, 2005)

Held, that Prime Minister Assistance Package, 2005, was meant for benefitting the ex-employees, which (package) was in line with the rules framed for the employees of Government in the relevant Provincial Civil Servants Act

Authorities were also performing duties under the Ministry of Education and the employees, who had rendered services under their establishment, could not be left high and dry and deprived of such benefits

Authorities could adopt the requisite criteria (prescribing qualification) or experience as required for any post under their command and the petitioner would also be subject to fulfilling the requisite criteria for any post to be considered commensurate to it, which would be in line with the principle for liberal construction of statutes, particularly that the mischief was suppressed and remedy granted

Said principle provided that if literal reading of provision did not produce absurdity or anomaly the same would not be construed to be only prospective

When the law was enacted for the benefit of community as a whole, even in the absence of a provision, the statute could be held to be retrospective in nature

Facility which had not yet been withdrawn but was subsisting, as such a vested right continue to accrue

Executive orders/notifications, which conferred right and were beneficial, would be given retrospective effect and those which were detrimental, prejudicial, had adversely affected, disturbed or invaded upon vested right could not be applied with retrospective effect

Prime Minister Assistance Package, 2005, as beneficial legislation was to be applied to the petitioner whose cause of action had accrued subsequent to the policy-in-question

Constitutional petition was allowed, in circumstances.

2021 PLC(CS) 1154 LAHORE-HIGH-COURT-LAHORE Judicial Precedent

Beneficial legislationScope

Beneficial legislation was to be interpreted in a purposive or teleological manner as opposed to the strict liberal approach because such purposive approach would advance the objects of such welfare legislation

Such purpose oriented approach encourages a liberal construction to promote its objects

Words occurring in Rules of liberal import such as social welfare and unemployment relief rules are not to be shrunk to Lilliputian dimensions

While constructing such rules, the imposture of literal construction must be avoided

Relevant is the colour, the content and the context of such enactments.

2021 PTD 1094 KARACHI-HIGH-COURT-SINDH Judicial Precedent

S.17SRO 1112 (I)/2014, dated 16-12-2014SRO No.772(I)/2018, dated 14-06-2018Confiscation of goodsBeneficial legislationScope

Department ordered for outright confiscation of consignments imported by respondent on the premise that the consignment arrived post the cut-off date as prescribed by the Ministry of Commerce in SRO No.1112 (I)/2014 dated 16-12-2014

Appellate Tribunal set aside the order-in-original

Validity

Adjudicating officer had not appreciated the SRO No.772(I)/2018, dated 14-06-2018 in its true perspective and proceeded to order the outright confiscation of the consignments, pursuant to a notification admittedly repealed during the pendency of the proceedings there before

Notification conferring a beneficial effect had to be given retrospective effect

Reference application was decided in favour of the respondent and against the applicant department.

2021 PCrLJ 1050 ISLAMABAD Judicial Precedent

Beneficial legislationScope

Beneficial legislation is promulgated to provide benefit to a class of individuals and, therefore, is to be interpreted in such a manner that the purpose of the statute should be achieved.

2021 PCrLJ 1050 ISLAMABAD Judicial Precedent

Preamble & S. 3Beneficial legislationScopeLegal assistance

Juvenile Justice System Act, 2018 is a beneficial legislation which provides for the protection of juvenile involved in criminal matters, safeguard his rights and takes all necessary measures which are in the best interest of the juvenile.

2018 CLD 1088 KARACHI-HIGH-COURT-SINDH Judicial Precedent

Ss. 2(f) & 3(b)Sindh Companies Profits (Workers' Participation) Act, 2015 (XVIII of 2016), Ss. 2(h), 3(b), 7(2) & 12(1)Beneficial legislationApplicabilityTrans-provincial companiesNumber of workers, determination ofPrincipleDispute was with regard to percentage of participation of workers in profits of trans-provincial companies

Participation of workers was up to 5% of the profit in the Province of Punjab whereas in Province of Sindh the same was 7% of the profit

Plea raised by industrial establishments was that they were only liable to distribute to workers in the Province of Sindh a proportionate amount calculated on the basis of five percent

Validity

Applying principle of beneficial legislation, the reference to number of workers in first condition must be regarded as referring to the total number of workers all over the country and not merely in the Province of Sindh

Principle of territorial limitation was not violated as it was only to establish parameters that would make the scheme applicable

Such parameters could be based on or take into account the factors that lie outside the Province

Condition which related to value of fixed assets of the company was irrelevant as the same could be located within or outside the Province

Law in the Province of Sindh was to be applied and workers were to get an amount proportionate to their number calculated at 7%

Workers in the Province of Punjab were to get an amount proportionate to their number calculated at five percent and the same was not discriminatory

Legislative competence was exclusively Provincial and territorial extent was limited

Each Province was entitled to legislate in its own manner in respect of a matter that was exclusively within its domain and it was irrelevant as to where the registered office and/or industrial undertaking of trans-provincial company were located i.e. that same could be located in the Province of Sindh or elsewhere

While making computation, the whole of profits made by company were to be used, regardless of where they were earned in the country

Constitutional petition was disposed of accordingly.

2018 PLC(CS) 1183 KARACHI-HIGH-COURT-SINDH Judicial Precedent