The Utility Stores Corporation has informed the Supreme Court that it was facing "economic constraints" and because of a "dire financial crunch" it had to resort to downsizing its strength.
In an appeal against the order of Federal Service Tribunal against the reinstatement of nearly 96 employees laid off some four years ago, the USC has also questioned the authority of the tribunal to intervene in its affairs as it was a "private limited firm" like the United Bank Limited and Pakistan International Airlines Corporation as decided by the Supreme Court in 1999 and 2000.
It also argued that the USC was a pure business organisation registered under the Company Act with its operation controlled according to the objectives and procedures as laid down in the Article and Memorandum of Association.
The employees of the corporation, it has been argued were governed by its Service Rules enforced in 1981 and were upgraded from time to time.
Admitting the appeal for regular hearing, the nation's final court of appeals held that the second contention "prima facie" raised questions that needed further examination and at the request of USC Counsel, Syed Muhammad Jaffar Hashemi ordered the suspension of FST's order until determination of the pleas. Advocate on Record, Imtiaz Muhammad Khan, instructed the lead counsel. The appeal is now in the queue with the Fixture Branch of the Court.
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