| Citation(s) |
|---|
| 2025 SLG 2188 2025 SLD 2188 = 2025 SCP 277 = 2026 SCMR 152 |
CPLA. No. 451-K of 2023 On appeal against the Judgment, dated 31.01.2023 passed by the High Court of Sindh, Karachi in Const.P.No.D-1134/2022
Justice Muhammad Ali Mazhar Justice Syed Hasan Azhar Rizvi Justice Aqeel Ahmed Abbasi
For the Petitioner : Muhammad Iqbal Chaudhry, ASC/AOR For the
Respondent(s) : Mr. Fazal Mannan Bacha, AHC with R-1 (Babu Sher) Mr. Sibtain Mehmood, Addl. A.G. Sindh (on Court’s call)
M/s Trio Industries (Pvt) Limited …Petitioner(s)
VERSUS
Babu Sher & others …Respondent(s)
Law: Sindh Terms Of Employment (Standing Orders) Act, 2015
Section: 15 (1),15 (2), 2(g), 3, 7, 13
Law: Sindh Industrial Relations Act, 2013
Section: 48(3)
Law: Constitution of Pakistan, 1973
Section: 199
Summary:
The petitioner was running a printing business for ceramic tiles, which became unviable due to technological advancements. The petitioner applied under Standing Order 15 of the Sindh Terms of Employment (Standing Orders) Act 2015 (the "2015 Act") to close down the factory by submitting the application to the Secretary, Labour Department, instead of the Government of Sindh through the proper channel (Chief Secretary or Sindh Cabinet). Employees challenged the closure as unlawful and filed grievance petitions alleging termination due to union activities. The Labour Court dismissed the petitions, but the Labour Appellate Tribunal allowed appeals for compensation instead of reinstatement, considering the factory was closed and reinstatement was impossible. The High Court upheld this decision.
The key legal issue was whether the closure application was correctly made and whether the Labour Appellate Tribunal had authority to award compensation. The court held that the application was wrongly filed to the Labour Department instead of the Government of Sindh, which is the competent authority under Standing Order 15. Since no proper approval was granted within 15 days, the closure could not be deemed approved. Given the unlawful closure and impossibility of reinstatement, compensation was rightly awarded to protect workers' dues. The court emphasized the need for clear procedural rules for closure approval, calling for legislative amendments or SOPs to protect workers and employers.
Core Points:
Petitioner applied to Secretary, Labour Department for closure instead of Government of Sindh (via Chief Secretary or Cabinet), which is improper under Standing Order 15 of the 2015 Act.