| Case ID |
e31092b8-390f-4658-b64f-6ddce728723a |
| Body |
View case body. Login to View |
| Case Number |
D-1589, D-1588, D-1743 of 2012 |
| Decision Date |
Oct 03, 2012 |
| Hearing Date |
Sep 26, 2012 |
| Decision |
The court ruled that the contributions required under the Employees' Old-Age Benefits Act, 1976 cannot be classified as a tax but rather a fee for services rendered. The amendments made by the Finance Act, 2008 to the Act were held to be without lawful authority and thus of no legal effect. The court emphasized the distinction between a tax and a fee, clarifying that the contributions are linked to specific employees and the services provided by the institution, thus invalidating the amendments as they were not passed in accordance with the constitutional provisions governing money bills. |
| Summary |
In the case of BANK ALFALAH LIMITED and others vs. FEDERATION OF PAKISTAN, the Sindh High Court addressed the legal classification of contributions under the Employees' Old-Age Benefits Act, 1976. The court deliberated on whether these contributions could be considered a tax or a fee. The petitioners argued that the Act could not be amended through a Finance Act since it is not a money bill. The respondents contended that contributions are taxes because they fund unemployment benefits. Ultimately, the court ruled that these contributions are fees for specific services provided to employees, and the amendments made through the Finance Act were invalid. This case highlights important legal principles regarding taxation, the authority of legislative amendments, and the rights of employees under labor laws. The ruling reinforces the necessity for legislative actions to adhere strictly to constitutional mandates, ensuring that the rights of the workers are protected and that any changes to labor laws are made within the framework of the law. |
| Court |
Sindh High Court
|
| Entities Involved |
Employees' Old-Age Benefits Institution
|
| Judges |
SHAHID ANWAR BAJWA,
AFTAB AHMED GORAR
|
| Lawyers |
Mehmood Abdul Ghani for Petitioners.,
Ahmed Shahzad Farooq Rana,
Asif Hussain Mangi, Standing Counsel for Respondents.
|
| Petitioners |
BANK ALFALAH LIMITED and others
|
| Respondents |
FEDERATION OF PAKISTAN through Secretary Law and others
|
| Citations |
2014 SLD 347 = 2014 PLC 40
|
| Other Citations |
Employer's Federation of Pakistan v. Federation of Pakistan, C.P. No.D-260 of 2008,
Sindh High Court Bar Association through its Secretary and another v. Federation of Pakistan through Secretary, Ministry of Law and Justice, Islamabad and others PLD 2009 SC 879,
Mir Muhammad Idris and others v. Federation of Pakistan through Secretary Ministry of Finance and others PLD 2011 SC 213,
Messrs Saif Textile Mills Limited v Pakistan through Secretary, Finance (Finance Division), Islamabad and 3 others, PLD 1998 Peshawar 15,
Muhammad Ismail & Co., Ltd., v. Chief Cotton Inspector PLD 1966 SC 388,
Messrs Fatima Enterprises v. Federation of Pakistan through Secretary, Education Ministry of Education, Islamabad and others, 1999 MLD 2889
|
| Laws Involved |
Employees' Old-Age Benefits Act, 1976,
Constitution of Pakistan
|
| Sections |
2(b),
4,
47(e),
Art. 199
|