The Supreme Court has ruled that employees of government-controlled corporations cannot get remedy from the Services Tribunals as their employment terms and conditions have not been determined under Article 240 of the Constitution.
Disposing of hundreds of appeals against judgements of Services Tribunals set up under Services Tribunal Act 1973 (STA-1973) and services matters, the apex court declared section 2-A of the STA-1973 partially ultra vires of Article 240 and 260 of the Constitution to the extent of the category of employees, whose terms and conditions of services have not been determined by the federal legislature and has stated that by deeming clause they cannot be treated as civil servants as defined under section 2(1)(b)of the CSA 1973 and they are not engaged in the affairs of the federation.
A nine-member full bench of the Supreme Court headed by Chief Justice Iftikhar Mohammad Chaudhry had heard these appeals from January 16 to 20, 2006 and had reserved the judgement which was announced here on Tuesday.
The court held that (a) section 2-A of the STA 1973 cannot be enforced in the absence of amendment in the definition of the civil servant under section 2(1)(b) of the Civil Services Act 1973 and (b) cases of employees under section 2-A, STA 1973, which do not fall within the definition of civil servant as defined in section 2(1)(b) of the CSA shall have no remedy before the services tribunal, functioning under Article 212 of the Constitution and they would be free to avail appropriate remedy.
Regarding effects of this judgement on cases pending before the Supreme Court and Federal Services Tribunal, the court, following the rule of past and closed transactions, laid down in the case of Mehram Ali vs the federation, has directed as follows:
a) cases which have been decided finally by the Supreme Court in exercise of jurisdiction under Article 212 (3) of the Constitution shall not be opened and if any review petition, miscellaneous application or contempt application filed against the judgement, is pending it shall be heard independently and shall not be affected by this judgement.
b) Proceedings instituted either by an employee or by an employer, pending before the Supreme Court against the judgement of Services Tribunal, not covered by category (a) before this court or the Services Tribunal shall stand abated leaving parties to avail remedy prevailing prior to the promulgation of Section 2-A of STA 1973.
c) Cases or proceedings, which are not protected or covered by this judgement shall be deemed to have abated and aggrieved persons may approach the competent forum for redressal of their grievances within a period of 90 days and the bar of limitation provided under the respective law shall not operate against them till the expiry of the stipulated period.
d) The Service Tribunal shall decide pending cases under section 2-A of the STA 1973 in view of above observations.
The full bench of the Supreme Court comprise Chief Justice Iftikhar Muhammad Chaudhry, Justice Rana Bhagwandas, Justice Javed Iqbal, Justice Abdul Hameed Dogar, Justice Faqir Muhammad Khokhar, Justice Mian Shakirullah Jan, Justice Muhammad Javed Butter, Justice Tassaduq Hussain Jilani and Justice Jamshaid Ali.