Authorities/statutory bodies/organizations: Not permitted to use allocation of public funds at sole discretion: SHC

KARACHI: The Sindh High Court (SHC) has ruled that the authorities/statutory bodies/organizations are not permitted to use the allocation of public funds at their sole discretion, and they have to take care of the public money and its proper usage strictly within the parameters of the Constitution and law.

A two-member bench of the SHC comprising Justice Muhammad Shafi Siddiqui and Justice Adnan-ul-Karim Memon gave this ruling in the written order of a petition, filed by Raees Ahmed and others versus Karachi Dock Labour Board (KDLB).

The order declared, "No public funds could be disbursed to any person and/or organization without complying with the legal sanction."

The court observed that transferring such benefits to only a selected group of employees of the KDLB violated the law, and therefore such a transfer of public money in the accounts of beneficiaries is a nullity in the eyes of law.

The court also observed that a great loss to the public exchequer has been caused by passing such Resolution BR. 13(f)/2011 dated 14.05.2011 and the public money has been influx to give benefits to the employees of the KDLB. The competent authority has not accorded any permission for accepting the demand of CBA under the law, the order declared.

The court examined the issue of whether the KDLB was lawfully entrusted with the task to grant payment of leave encashment to the retired employees/beneficiaries and to pass such Board Resolution BR. 13(f)/2011 dated 14.05.2011 under the Karachi Dock Labour Workers (Regulation of Employment) Scheme 1973 (the Scheme, 1973).

The court observed that it is an admitted position that the Karachi Dock Labour Board is a statutory body established under the Karachi Dock Labour Workers (Regulation of Employment) Scheme, 1973 and noted that on merits, the petitioners were performing their duties and stood retired against which they were duly paid their terminal dues/salaries; therefore, the question of additional benefits i.e. 70% leave encashment does not arise under the revised Leave Rules 1980 as amended up-to-date.

The court ruled that the petitioners have neither authority nor title to claim amount, which is public money.

The court also declared the beneficiaries have received ill-gotten gain and ruled that all the persons who have received benefits out of the public money are liable to be accounted for in law and the public money must be returned to the public exchequer account forthwith, under law.

The court declared that the KDLB erroneously passed Resolution BR. 13(f)/2011 dated 14.05.2011 and the beneficiaries gained the benefits out of the public money without any justifiable reason and dismissed the petition.

Copyright Business Recorder, 2021