Law: Pakistan Science Foundation Act, 1973

Section: 3, 4(3), 5, 16(1), 16(2), 16

Summary

This judgment concerns employees of the Pakistan Science Foundation (the "Foundation"), established under the Pakistan Science Foundation Act, 1973. The dispute arose when the Federal Government directed the Foundation to stop paying a 20% Special Allowance (previously granted to Federal Ministries/Divisions) and to recover already paid amounts from employees. The petitioners challenged this directive, arguing that the Foundation’s Board of Trustees, not the Federal Government, has the exclusive authority to determine employee pay and allowances under the Act of 1973.

The Court examined the statutory framework and held that the Board of Trustees is vested with exclusive power to set terms and conditions of service for Foundation employees, including allowances, as per Section 16 of the Act. The Federal Government's role is limited to providing guidance on policy matters related to the Foundation's functions (Section 4(3)), but this does not extend to employee appointments or pay matters, which are explicitly governed by Section 16. The Court concluded that the Federal Government’s letter should be treated as information or opinion for the Board’s consideration—not as a binding directive.

The petition was allowed, directing the Board of Trustees to independently consider the Federal Government’s communication and decide on the allowance in accordance with the law.