SC dismisses firm’s plea, rules ignorance of law no excuse in labour dispute

ISLAMABAD: The Supreme Court (SC) has ruled that no one can benefit from their own wrongdoing and that ignorance of the law is no excuse, while dismissing a petition filed by a firm in a labour dispute case.

A three-member bench, led by Justice Muhammad Ali Mazhar, upheld the decisions of the Sindh Labour Appellate Tribunal and the Sindh High Court (SHC), affirming that the company unlawfully attempted to shut down its business without proper government approval or settling dues of its employees.

The court observed that the petitioner wrongly presumed that its application for closure under Standing Order 15 of the Sindh Terms of Employment (Standing Orders) Act, 2015, was automatically accepted after 15 days. The judgment clarified that such assumptions are contrary to law and highlighted the need for a formal, structured process, including cabinet-level approval, to shut down industrial establishments.

The judgment further noted that the company failed to pay legal dues to its employees and attempted to justify its actions under flawed legal interpretations. The court stressed that legal provisions must be followed in letter and spirit, and any mala fide closure or bypass of due process undermines both justice and industrial harmony.

In a broader recommendation, the court called for the Sindh government to establish a clear mechanism or SOPs for processing closure applications, ensuring workers’ rights are protected, and employers are shielded from unnecessary litigation. The civil petition was dismissed and leave to appeal was refused.