SHC issues show-cause notices to federal secretaries, PSM CEO over pensioners’ dues

The Sindh High Court (SHC) has issued show-cause notices to the federal finance, industries and production, and cabinet division secretaries, and the chief executive officer (CEO) of the Pakistan Steel Mills (PSM) to respond to why accounts of the federal government should not be attached in order to settle the liabilities of more than 850 retired employees of the Pakistan Steel Mills.

The show-cause notices were issued on a petition filed by Syed Umar Baqi and 850 other workers who had moved the SHC against the non-payment of their gratuities, leaves encashment and provident funds since May 2013.

Their counsel, Haseeb Jamali, submitted that the gratuity and provident funds of the retired employees had not been paid by the PSM despite the court orders. He submitted that the Steel Mills had leased its land worth billions of rupees but the retired employees were yet to be paid their pension benefits and other dues.

The high court took exception to the non-payment of the outstanding dues of the retired PSM employees. The SHC observed that the finance division had submitted its report and sought time to enable the federal government to make budgetary appropriation for the settlement of the petitioners’ dues during the financial year 2020-2021, subject to the approval of parliament. A deputy attorney general submitted that the federal government was sincerely trying to allocate special funds for the settlement of the dues of the petitioners and the entire process would take some time due to the involvement of several departments. The high court observed that the federal government was not disputing or denying its liability and had in fact agreed to settle the dues but the question at this stage was the mode of the execution of the court orders.

The SHC observed that the Supreme Court had already observed that assets and properties of the PSM would not be sold for settling the dues of the petitioners.

The high court observed that the procedure adopted by the federal government for settling the dues of the petitioners was causing unnecessary delay due to which the petitioners were facing extreme hardship and no time frame or specific date had been disclosed by the federal government.

The SHC observed that in such circumstances the only option that appeared to be was that the relevant account or fund of the federal government be attached to the extent of the dues payable to the petitioners.

The high court issued show-cause notice to the federal finance secretary, federal industries and production secretary, cabinet division secretary and PSM CEO who were told to respond to why the relevant account or fund of the federal government should not be attached in order to settle the liabilities of the petitioners.

The SHC directed the Nazir of the court to release all the cheques as well as the profit which had been deposited before the Nazir in favour of the beneficiaries of the said cheques after proper verification and identification.

The high court also directed the federal secretaries and the PSM CEO to appear before the court on March 4.