| Case ID |
30615088-8ee7-4e7c-a286-401bee7f6404 |
| Body |
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| Case Number |
Appeals Nos. 46-K, 53-K, 54-K, 58-K and 62-K of 19 |
| Decision Date |
Jul 06, 1998 |
| Hearing Date |
Jul 02, 1998 |
| Decision |
The appeals were disposed of as infructuous, affirming that the retained employees of the defunct Mehran Bank were entitled to their previous remuneration and terms for a period of three years following the effective date of amalgamation with the National Bank of Pakistan. The Tribunal clarified that while the retained employees could not be subjected to less favorable terms than what they enjoyed before amalgamation, the transferee bank was obligated to extend corresponding terms and conditions after the three-year period, subject to scrutiny of qualifications and experience. The grievances raised by the appellants were found to be addressed by a letter from the transferee bank, which confirmed the adjustment of their remuneration and conditions to match those of other employees of equivalent status. |
| Summary |
In the case of the amalgamation of Mehran Bank with National Bank of Pakistan, the Federal Service Tribunal ruled on the rights of retained employees during the transition. The case involved appeals from former employees seeking to maintain their benefits post-amalgamation. The Tribunal highlighted the provisions under the Banking Companies Ordinance, 1962, particularly Section 47(5), which protects the rights of employees during mergers. The decision emphasized that retained employees were entitled to the same remuneration and terms for three years after the effective date, after which the transferee bank must align their terms with other employees based on qualifications and experience. This case is significant for understanding employee rights during bank amalgamations and the legal frameworks that govern such transitions, ensuring fair treatment for employees amidst corporate restructuring. |
| Court |
Federal Service Tribunal
|
| Entities Involved |
National Bank of Pakistan,
State Bank of Pakistan,
Mehran Bank Ltd.
|
| Judges |
MUHAMMAD RAZA KHAN,
NOOR MUHAMMAD MAGSI
|
| Lawyers |
Kanwar Mukhtar,
Gulzar Ahmed,
S.M. Raza Zahid,
M. Shibli
|
| Petitioners |
JAVED IRFAN and others
|
| Respondents |
FEDERATION OF PAKISTAN through Secretary, Ministry of Finance, Government of Pakistan, Islamabad and 2 others
|
| Citations |
2000 SLD 1771 = 2000 PLC 1330
|
| Other Citations |
Not available
|
| Laws Involved |
Banking Companies Ordinance, 1962
|
| Sections |
47(5)
|