| Case ID |
d6bd0987-60c8-4d4e-8a21-c52601ec3ded |
| Body |
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| Case Number |
Civil Appeal No. K-20 of 1976 and K-21 of 1976 |
| Decision Date |
|
| Hearing Date |
Nov 15, 1976 |
| Decision |
The Supreme Court of Pakistan dismissed both Civil Appeals K-20 and K-21 of 1976, ruling that ex gratia payments made by the employers during periods of work stoppage due to civil commotion were not classified as 'wages' under the West Pakistan Employees Social Security Ordinance, 1965. The Court affirmed that the definition of 'wages' in the Ordinance does not encompass every payment made by an employer to an employee. The Court highlighted that the payments made during the stoppage did not meet the legal definition of wages, and therefore, employers were not obligated to pay social security contributions on such payments. The ruling underscored the importance of the statutory definition of wages and clarified that natural justice principles regarding prior hearings were not applicable in this context, as the employers had been afforded the opportunity to appeal the demand in the Social Security Court. |
| Summary |
In this landmark case, the Supreme Court of Pakistan addressed critical issues surrounding the definition of 'wages' as per the West Pakistan Employees Social Security Ordinance, 1965. The case involved the Sind Employees Social Security Institution demanding social security contributions from Dawood Cotton Mills and Adamjee Cotton Mills for ex gratia payments made to employees during periods of industrial unrest in June and July 1972. The Court emphasized that the definition of wages does not extend to all payments made by employers, particularly those made during unauthorized absences. The judgment clarified the legal obligations of employers under the Ordinance and reinforced the principle that statutory definitions must be adhered to strictly. This case is significant for its implications on labor law and employer responsibilities in Pakistan, making it a crucial reference point for future disputes regarding wage definitions and social security contributions. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
SIND EMPLOYEES SOCIAL SECURITY INSTITUTION,
DAWOOD COTTON MILLS LTD.,
ADAMJEE COTTON MILLS LTD.
|
| Judges |
MUHAMMAD YAQUB ALI, C.J.,
ANWARUL HAQ, J.,
MUHAMMAD GUL, J.,
MUHAMMAD AKRAM, J.,
MUHAMMAD HALEEM, J.
|
| Lawyers |
S. A. Sarwana, Advocate,
A. Aziz Dastgir, Advocate-on-Record,
Khurshid Anwar Sheikh, Advocate,
All Akbar Advocate-on-Record
|
| Petitioners |
SIND EMPLOYEES SOCIAL SECURITY INSTITUTION,
AND another
|
| Respondents |
DAWOOD COTTON MILLS LTD.,
ADAMJEE COTTON MILLS LTD.
|
| Citations |
1977 SLD 252,
1977 PLD 177
|
| Other Citations |
The Collector, Sahiwal v. Muhammad Akhtar 1971 S C M R 681,
Attar Muhammad Qureshi v. The Settlement Commissioner P L D 1971 S C 61,
University of Dacca v. Zakir Ahmed P L D 1965 S C 90
|
| Laws Involved |
West Pakistan Employees Social Security Ordinance, 1965,
West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968
|
| Sections |
20,
2(30),
11
|