SHC orders utilising Rs23.1bn from Centre to pay up dues of PSM’s retired employees

The Sindh High Court has directed its Nazir (official) to ensure that the entire amount of Rs23.121 billion is utilised for settling the claims of retired Pakistan Steel Mills’ employees about post-retirement benefits and that this exercise is completed expeditiously.

The direction came during a hearing of petitions filed by Syed Umar Baqi and 850 other retired PSM workers, who had moved the SHC against the non-payment of their dues on account of gratuity, leaves encashment and provident fund since May 2013.

The Nazir of the court submitted that the federal government in compliance with the court directives had deposited Rs23.121 billion for the settlement of the outstanding dues of the retired PSM employees.

The petitioners’ counsel submitted that the process of disbursement of amounts to former employees towards their post-retirement benefits had been started by the Nazir in September 2020, and that process was yet to be completed.

They said the Nazir of the court was not entertaining the claims in respect of arrears or differential of salaries, succession certificates produced by the legal heirs of deceased employees and claims submitted by employees who retired during the pendency of the petitions or after the passing of the order.

A division bench headed by Justice Nadeem Akhtar, after hearing the arguments of the counsel, directed the Nazir of the court to ensure that the entire amount of Rs23.121 billion received from the federal government is used for the settlement of the claims of retired PSM employees, and that the entire exercise is completed as expeditiously as possible.

The court observed that if any surplus amount is left after full and final settlement of the dues, the surplus amount shall be utilised for satisfying the claim of retired employees in respect of their arrears or differential amounts of salary. The court observed that claims in respect of arrears or differential of salary shall be scrutinised and verified by the PSM after hearing the employees concerned, whereafter the amount as verified by the PSM shall be paid to the beneficiary.

It further said that in cases where succession certificates are submitted by the legal heirs of deceased retired employees, the Nazir shall disburse the share of each legal heir according to his/her entitlement as per Shariah and the share of minor legal heirs shall be kept by the Nazir in his safe custody by investing the same in profit-bearing government scheme till the minor attains the age of majority.

The court observed that all its directions shall be applicable to the cases of all such retired employees of PSM/their legal heirs who have not received their post-retirement benefits and have not approached it.

It said all retired employees who did not receive post retirement benefits shall be entitled to the same treatment as has been given to the petitioners of the case and disposed of the petitions.