Case Details

Citation(s)
2025 SLG 3616 2025 SLD 3616 = 2025 SHC 1663 = 2025 SHC 1675
Sindh High Court
CP. No. D-4148 of 2020 CP. No. D-4149 of 2020
Adnan-ul-Karim Memon, J
Dr. Raana Khan advocate for the petitioners. Mr. Muhammad Safdar advocate for respondent No.3. Ms. Wajiha Mehdi Assistant Attorney General.

(Ghulam Abbas v Federation of Pakistan & others) (Wali Muhammad v Federation of Pakistan & others)

Law:

Section:

Summary:

The petitioners, former employees of the Cotton Export Corporation (CEC), challenged the Trading Corporation of Pakistan (TCP) Board's decision to not recognize their service from the CEC-TCP merger date (January 19, 2001) for retirement benefits. Despite opting for a Voluntary Retirement Scheme (VRS) in 1993, they continued working after CEC's merger into TCP. The TCP Board, following Supreme Court directives, refused retrospective regularization citing VRS terms and prior regularization dates (2008 and 2011). The Court found TCP's stance untenable and aligned with precedents granting pension benefits from the merger date, ordering TCP to calculate and pay retirement dues accordingly within three months.

Core Points:

  • Petitioners worked for CEC before its merger with TCP on January 19, 2001.
  • Petitioners opted for VRS in 1993 but were retained post-merger with TCP.
  • TCP Board rejected retrospective regularization and service counting from merger date.
  • Board's decision based on VRS conditions prohibiting re-employment and prior regularization dates.
  • Supreme Court directed TCP Board to decide on petitioners’ service length within four weeks.
  • TCP Board rejected claims in February 2020, linking benefits to later regularization dates.
  • Court cited Supreme Court precedents (including National Insurance cases) supporting pension rights from merger date.
  • Court ordered retirement benefits to be recalculated from January 19, 2001, and disbursed within three months.
  • Pensionary benefits constitute a vested right after merger despite VRS.
  • TCP Board's denial of retrospective benefits violates prior court orders and legal principles.

Law and Section Table:

Law/Case CitationKey Legal Principle/Section
Supreme Court Order dated January 4, 2020Directive to TCP Board to determine service length for retirement
National Insurance Company v. Ahmed Ali Bhambhro (2018 SCMR 2116)Pension rights protected upon mandatory transfer between entities
National Insurance Company Ltd. v. Roshan Ali Sidique (Civil Appeal No.1297 of 2016, 2017 order)Estoppel principle: pension promises made on absorption cannot be withdrawn; vested rights preserved
TCP Service Rules, ESTACODE (implied)Regularization and employment terms, handling of VRS implications
Voluntary Retirement Scheme (VRS) conditionsNo re-employment clause, payment of retirement dues upon opting

 

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