Legal Case Summary

Case Details
Case ID 439d39e3-5bdb-4b70-8779-c413f27a2afe
Body View case body.
Case Number I.C.A. No. 594 of 2012
Decision Date Jan 31, 2017
Hearing Date Dec 13, 2016
Decision The Islamabad High Court allowed the intra court appeal to the extent of setting aside the direction for the recovery of benefits derived by Syed Azhar Abbas Jafri during his tenure as CEO of House Building Finance Corporation Limited (HBFCL). The court held that the appellant's appointment was unlawful as it violated Section 11(12)(c) of the Banks (Nationalization) Act, 1974 due to his foreign nationality. However, since the appellant had candidly disclosed his nationality during the fit and proper test, he should not be burdened with the recovery of benefits received during his service. The court's decision was based on established legal principles that protect individuals from being deprived of salary for work performed, even if their appointment is later deemed illegal.
Summary In the case of I.C.A. No. 594 of 2012, the Islamabad High Court addressed the legality of the appointment of Syed Azhar Abbas Jafri as Managing Director/CEO of House Building Finance Corporation Limited (HBFCL). The court examined the implications of the Banks (Nationalization) Act, 1974, particularly Section 11(12)(c), which barred the appointment of foreign nationals, and the subsequent amendments made by the Banks (Nationalization) (Amendment) Act, 2011. The court noted that while the appellant's appointment was declared unlawful, he had disclosed his foreign nationality prior to his appointment and had performed his duties during his tenure. Thus, the court ruled that he should not face recoveries for benefits received during his service, aligning the decision with established legal precedents that safeguard employees' rights. This case highlights critical aspects regarding the management of public corporations and the interpretation of nationalization laws in Pakistan.
Court Islamabad High Court
Entities Involved Federal Government, State Bank of Pakistan, House Building Finance Corporation Limited
Judges MIANGUL HASSAN AURANGZEB, ATHAR MINALLAH
Lawyers Faisal Siddiqui, Hashmat Ali Habib, Ehsan Ahmad Khawaja, Sultan Mazhar Sher, M.A. Rehman Qureshi
Petitioners SYED AZHAR ABBAS JAFRI
Respondents Respondent No. 1, Respondent No. 8, Respondent No. 4, Respondent No. 5, HBFC WORKMEN UNION OF PAKISTAN
Citations 2017 SLD 1733, 2017 PLC 1393
Other Citations PLD 1992 SC 207, 2001 SCMR 1320, 2007 PLC (C.S.) 924, 2005 PLC (C.S.) 790, 2003 PLC (C.S.) 1376, 1995 PLC (C.S.) 119
Laws Involved Banks (Nationalization) Act, 1974, Banks (Nationalization) (Amendment) Act, 2011
Sections 11, 11(12)(c), Preamble