Legal Case Summary

Case Details
Case ID 0bea3382-4306-4c7a-acdc-d7b2d1999be5
Body View case body.
Case Number Constitutional Petition No. D 271 of 1977
Decision Date Sep 26, 1978
Hearing Date
Decision The Sindh High Court held that the payments made were not prima facie intended to provide relief due to the rise in cost of living, specifically addressing the increases in conveyance allowance, medical allowance, and house rent. The court concluded that these payments did not meet the criteria set forth in the Employees Cost of Living (Relief) (Amendment) Act (XLVII of 1974) for providing relief from increased living expenses, thereby resolving the industrial dispute in favor of the respondents.
Summary In the landmark case of ALPHA INSURANCE Co. LTD. versus EMPLOYEES’ UNION AND ANOTHER, adjudicated by the Sindh High Court on September 26, 1978, Constitutional Petition No. D 271 of 1977 addressed critical issues surrounding the interpretation of the Employees Cost of Living (Relief) (Amendment) Act (XLVII of 1974). The Sindh High Court, presided over by Judges FAKHRUDDIN G. EBRAHIM and AJMAL MIAN, evaluated whether specific payments such as conveyance allowances, medical allowances, and house rent were prima facie intended to alleviate the impact of rising living costs as stipulated in Section 8 of the Act. The Court held that these payments did not meet the prima facie requirement of providing relief from increased living costs. Furthermore, under Article 199 of the Constitution of Pakistan, the Court distinguished between untenable and plausible constructions of statutory provisions, reaffirming its stance on judicial intervention when interpretations render a statute untenable. This ruling was significant in shaping employment law and industrial dispute resolutions, emphasizing the necessity for clear legislative intent in economic relief measures. The case also referenced pivotal precedents, including Security Papers Employees' Union v. 4th Sind Labour Court and Employees' Welfare Union v. R. B. Industries Ltd., reinforcing the Court's interpretation framework. The decision has since been instrumental for legal professionals and entities involved in labor relations, ensuring fair application of cost of living adjustments and statutory interpretations in employment-related legal matters.
Court Sindh High Court
Entities Involved Karachi Electric Supply Corporation Ltd., ALPHA INSURANCE Co. LTD., EMPLOYEES’ UNION, 4th Sind Labour Court, R. B. Industries Ltd.
Judges FAKHRUDDIN G. EBRAHIM, AJMAL MIAN
Lawyers S. A. Shamsi, A. A. Fazeel, Wazir H. Rizvi
Petitioners ALPHA INSURANCE Co. LTD.
Respondents EMPLOYEES’ UNION AND ANOTHER
Citations 1979 SLD 121 = 1979 PLD 47
Other Citations Security Papers Employees' Union v. 4th Sind Labour Court and another P L D 1976 Kar. 288, Employees' Welfare Union v. R. B. Industries Ltd. P L D 1976 Kar. 297 fol., Karachi Electric Supply Corporation Ltd. v. Karachi Electric Supply Corporation Ltd. Labour Union P L D 1967 S C 516 fol.
Laws Involved Employees Cost of Living (Relief) (Amendment) Act (XLVII of 1974)
Sections S. 8, Art. 199