Find a Lawyer

Appeal No. 119(K) of 1983, decided on 16th July, 1984.

‑‑‑S.2(a)‑‑Service Tribunals Act (LXX of 1973), Ss. 2(a) & 4‑‑Corpo ration Employees (Special Powers) Ordinance (XII of 1978), S. 5‑‑Pakistan National Shipping Corporation Ordinance (XX of 1979), Ss. 5(2), 14 & 21‑‑Jurisdiction of Service Tribunal‑‑Whether can be invoked by employees of National Shipping Corporation for redress of violation of terms and conditions of service‑‑Contention that (i) Service under Corporation declared as "Service of Pakistan" 'under S. 5 of Corporation Employees (Special Powers) Ordinance, 1978 hence employees of Corporation under jurisdiction of Tribunal, and (ii) Federal Government having full control over Corporation it was a part of Government and persons serving in it were serving in connection with affairs of the Federation‑‑‑ Conceptions repelled‑‑Held. (i) employees of Corporation though declared to be in the "Service of Pakistan" are "Civil servants" only when removed or reverted under S. 3 of Corporation Employees (Special Powers) Ordinance, 1978, (ii) mere control of Government, over a Corporation declared to be a Body Corporate does not make it a department of Government, (iii) employees of Corporation in spite of being in the "Service of Pakistan" are not "Civil servants" within meanings of S. 2(a), Civil Servants Act, 1973 and S. 2(a) of Service Tribunals Act, 1973 hence cannot invoke jurisdiction of Service Tribunal‑‑Service Tribunal advising for creating some forum for employees of Corporate Bodies, Nationalised Banks and other Organiza tions under Government control other than those falling within definition of "workman" for adjudication of disputes pertaining to their terms and conditions of service.

Joseph v. Secretary, Ministry of Communications and others 1983 P L C (C.S.) 600 and Amir Ali v. Chairman, C.D.A. 1980 P L C (C.S.) 333 rel.

‑‑‑S. 12‑A‑‑Corporation Employees (Special Powers) Ordinance (XIII of 1978)‑‑Observations of Service Tribunal‑‑Provisions having served their purpose required to be repealed.

M. Khalid Ishaq for Appellant.

Aziz A. Munshi, Deputy Attorney‑General for Respondent No.1.

Yousaf Rafi for Respondent No. 2.

Date of hearing: 28th April, 1984.

‑‑ The sole question for determination before this Full Bench at this hearing is whether the employees of Pakistan National Shipping Corporation can invoke the jurisdiction of the Tribunal for redress of violation of any of their terms and conditions of service.

2. Pakistan National Shipping Corporation is a corporate body, established under the Pakistan National Shipping Corporation Ordinance (XX of 1979). Mr. Khalid Ishaq, the learned counsel for the appellant, has argued that since the service under the Corporation has been declared to be 'Service of Pakistan' under section 5 of the Corporation Employees (Special Powers) Ordinance (XIII of, 1978), the employees thereof are within the jurisdiction of this Tribunal for adjudication of disputes of their terms and conditions of service.

3. The precise question had come up before a Division Bench of this Tribunal in the case of Joseph v. Secretary, Ministry of Communi cations and others 1983 P L C (C. S.) 600. Joseph was an employee of the Karachi Port Trust, a similar body and it was held that the employees of a Corporation, though have been declared to be in the 'Service of Pakistan', are "civil servants" for the purpose of Service Tribunals Act (LXX of 1973) only, when they are removed or reverted to a lower post under section 3 of the said Ordinance. Prior to that, in the case of Amir Ali v. Chairman, C.D.A. 1980 P L C (C.S.) 333, the same view was taken. We would not encumber this judgment by reproducing arguments of the parties and the grounds on which decision on those cases proceeded.

4. Pakistan National Shipping Corporation, as already stated, was established under the Pakistan National Shipping Corporation Ordinance (XX of 1979). Under subsection (2) of section 5 thereof, it has been declared to be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable and it can sue or can be sued by the name assigned to it. Thus it is a separate independent entity distinct from any Government Department. The Government or Government Department are sued and can sue in the name of the Federation, or the Province, but in the case of Corporations, the Corporation itself is the only party to a suit. It is, therefore, difficult to accept the contention of Mr. Khalid Ishaq that Pakistan National Shipping Corporation is a part of the Government and the persons serving in it are serving in connection with the affairs of the Federation. It was argued that the Government has full control over the Pakistan National Shipping Corporation, inasmuch as, five Directors of the Corporation are appointed by the Federal Government under section 14 of the Ordinance. Moreover, under section 11(2), the Federation shall always have more than 51% of the subscribed capital, giving it control over day to day affairs of the Corporation. We are afraid, the control of the Federal Government over the Corporation does not make it a department of the Federal Government. There are several organisations which the Government controls and, in fact, each Corporation is subject to control of the Government in one way or the other. Section 21 of the Ordinance gives powers to the Corporation itself to appoint officers etc., contrary to the constitutional provisions that the persons in the 'Service of Pakistan' shall be appointed by the President or by a person authorised by him. From whatever angle we may see, the employees of the Corporation, in spite of being in the 'Service of Pakistan', are not "civil servants" within the meaning of section 2(a) of the Service Tribunals Act (LXX of 1973) read with section 2(a) of the Civil Servants Act (LXXI of 1973), and as such they cannot invoke the jurisdiction of this Tribunal.

5. The result is that this appeal is dismissed for want of jurisdiction.

6. Before we part, we may make two observations:

(1) Corporation Employees (Special Powers) Ordinance (XIII of 1978) and section 12‑A of the Civil Servants Act (LXXI of 1973) having served their purpose require to be repealed to make the position clear.

(2) The officers of Corporate Bodies, Nationalised Banks and other organisations over which Government has control, have no forum for adjudication of their disputes unless they come within the definition of "Workman"; as given in the Industrial Relations Ordinance. It is high time that some forum is created for them or otherwise the Service Tribunal is given power to hear their appeals.

A.E. Appeal dismissed.

Find a Lawyer Near You

Dealing with a matter like this? Connect with a verified advocate in your city — free on SJP Lawyers Directory.