Employees of Statutory Corporation and Constitutional Jurisdiction of the Courts

Employees of Statutory Corporation and Constitutional Jurisdiction of the Courts Case Laws Constitutional Law Employment & Incentives Jurisdiction Knowledge - Constitutional Law Litigation & Arbitration Public & Admin Law Solutions - Constitutional Law Statutory Corporation Supreme Court Mr. Justice Mushir Alam in his judgment has decided the issue regarding employees of statutory corporation and constitutional jurisdiction of the Courts in Civil Appeal No. 1519 of 2013.

1. This appeal by leave of the Court is directed against order dated 20.6.2013 of Lahore High Court, Lahore, whereby Writ Petition No.11584 of 2013 filed by the appellant challenging the order of his compulsory retirement was dismissed.

2. Facts, in brief, are that the appellant holding the charge of Deputy Director (Revenue), a Grade-18 post in Lahore Development Authority (LDA) was suspended from service and issued a show cause notice dated 02.7.2012 under Section 7(b) read with Section 5(1) (a) of the Punjab Employees Efficiency, Discipline and Accountability Act, 2006 (PEEDA, 2006) for having committed irregularities detailed therein. Show cause notice was contested and after hearing, major penalty of compulsory retirement from service was inflected on the appellant by the Director General/Competent Authority of the LDA vide order dated 3.8.2012. Departmental appeal was dismissed by the Chairman, LDA on 23.4.2013, which was challenged through Writ Petition No.11584 of 2013. The learned High Court dismissed the petition inter alia holding that:-

“Learned counsel for the petitioner has admitted before this Court that there are no statutory rules of service and on the basis of malafide on the part of respondents he has filed this constitutional petition. I am afraid when there are no statutory rules of service and rule of master and servant is applicable, therefore, in the light of case law referred by learned counsel for the respondents i.e. Lahore Development Authority and others Versus Abdul Shafiq and others” (1992 PLC 1214) as well as an unreported judgment of this Court passed in Writ Petition No.11926 of 2011 titled “Masood Ahmad Qazi Vs. L.D.A etc” decided on 18.1.2012, this writ petition is not maintainable. Even if it is presumed that there was some malice or malafide on the part of respondents, simply saying so is nothing until and unless it is proved through cogent evidence. The petitioner, if so advised, can file a suit for damages, if he has wrongly been dismissed from the service. In this view of the matter, this petition being not maintainable stands dismissed.”

3. Mr. Mehboob Azhar Sheikh, learned ASC appearing for the appellant contends that the appellant was not proceeded under the Lahore Development Authority Service Regulations, 1978 (LDA Regulations, 1978) which admittedly are non statutory. He was proceeded under the PEEDA, which is a statutory enactment and any violation thereof or action taken there under is amenable to writ jurisdiction and in support of his contention he has placed reliance on the case of Muhammad Amin vs. Government of Punjab (2015 SCMR 706) wherein it has been held that employees of statutory authority who fall within the ambit of employee covered under section 2(h) (i) of the PEEDA, 2006 and are not civil servants, for redressal of their grievances arising out of disciplinary proceedings under PEEDA, 2006 may invoke jurisdiction of the High Court under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973.

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