| Case ID |
0942d901-497b-4f8e-b778-34831f2a5f4a |
| Body |
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| Case Number |
Civil Appeal No. 1231 of 1998 |
| Decision Date |
Dec 10, 2003 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan partly accepted the appeal of the Nationalianker Company (Pvt.) Limited against the Sindh High Court's judgment. The Court held that the High Court was justified in not granting immediate relief for the refund of the Workers Welfare Fund due to the company's non-compliance with the mandatory provisions of the Companies Profit (Workers Participation) Act, 1968. However, it was decided that the profits accrued from the allocated fund should be distributed to the workers once the company complies with the Act's requirements regarding the establishment of a Board of Trustees. This decision modifies the earlier judgment to ensure that the profits are eventually paid to the workers, thus emphasizing the need for compliance with legal formalities in the distribution of funds. |
| Summary |
In the case of Civil Appeal No. 1231 of 1998, the Supreme Court of Pakistan dealt with the provisions of the Companies Profit (Workers Participation) Act, 1968, specifically focusing on the distribution of profits accrued from the Workers Welfare Fund. The appeal was initiated by the Nationalianker Company (Pvt.) Limited against the judgment of the Sindh High Court which dismissed their constitutional petition. The crux of the dispute was the non-compliance by the company in establishing a Board of Trustees, which is a requisite for the distribution of profits to workers. The Supreme Court highlighted that while the High Court did not err in denying immediate refunds due to this non-compliance, it did mandate that any profits accrued from the allocated fund must be distributed to the workers once compliance is achieved. This case underscores the importance of adhering to legal frameworks that govern corporate profits and workers' rights, ensuring that workers receive their entitled benefits under the law. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
FEDERAL GOVERNMENT OF PAKISTAN,
NATIONALIANKER COMPANY (PVT.) LIMITED
|
| Judges |
MUNIR A. SHEIKH,
IFTIKHAR MUHAMMAD CHAUDHARY,
RANA BHAGWANDAS
|
| Lawyers |
Syed Haider Ali Pirzada, Advocate Supreme Court for Appellants,
Mrs. Naheeda Mehboob Ellahi Standing Counsel Chaudhry Akhtar Ali, Advocate-on-Record for Respondent
|
| Petitioners |
ANOTHER,
NATIONALIANKER COMPANY (PVT.) LIMITED
|
| Respondents |
FEDERAL GOVERNMENT OF PAKISTAN
|
| Citations |
2004 SLD 692 = 2004 CLD 1505
|
| Other Citations |
Not available
|
| Laws Involved |
Companies Profit (Workers Participation) Act, 1968
|
| Sections |
3
|