QAZI MUHAMilAD HUSSAIN SlDDIQUI, MEMBER-- - The Appellant had been serving as Assistant Manager (P&GS) at principal office of State Life Insurance Corporation of Pakistan (for short SLIC) at Karachi. He retired from service on 18.4.2003 after completing service of 30 years. Being aggrieved by and dis-satisfied from the final reply dated 09.7.2003, received by him on 11.7.2003, issued by the Manager (Medical) on behalf of the Respondents in response to his representation dated 20.6.2003 regarding denial of the full and free medical facilities to him being" retired officer, he preferred this appeal before the Tribunal on 21.7.2004 under section 4 of the Service Tribunals Act of 1973, praying as under: "(a) That the self made circulars denying the full free medical facilities to the appellant being retired officer by the Respondent No. As Communicated vide two letters Nos. MED.POC/06/4370, dated 11.6.2003 and MED/POC/06/4527, dated 9.7.2003 are illegal, against the principles of law and contrary to the laid down policy by the President of Pakistan and Finance Division are liable to be set aside.(b) To declare that the Respondent No. 2 is bound to follow the medical treatment policy laid down by the Government/President of Pakistan and cannot amend or aIter any provisions which Is without any jurisdiction and illegal.
(c) To direct the Respondent to allow free medical facilities to the Appellant being retired officer of the State Life Insurance Corporations equivalent to the serving officers as per the revision of the Scales of Pay and Allowances as revised by the President of Pakistan and communicated by the Ministry of Finance Division vide D.O. No. 1(1) lmp/94, dated 23.1.1994 whereby the post retirement medical facility to be extended to the retired officers shall be as applicable to the serving officers as well.
(d) To direct the Respondents to extend the medical facilities to the Appellant in accordance to the consolidation of Medical regulation, 1973 Circular and instructions dated 12.7.1989 whereby the officers are entitled to free medical attendance and treatment from authorized medical attendant for him and his spouse & dependants at the Corporation's cost without any limit and to receive medical attendance and treatment at his residence even in case of disability of approaching the concerned medical officers.
(e) To grant the compensation and the expenses so far incurred by the Appellant after his retirement on the basis of the policy laid down by the'Federal Government.
(f). To grant cost of the Appeal and any other relief which may deem fit and proper under the circumstances of the case."
2. .Para-wise comments/objections were filed on behalf of Respondent No. 2 only in which it has been stated that the Appellant, as a retired officer of the SLIC, is entitled to medical facilities in accordance with circular No. P&GS/PO/1S/94, .Dated 25,5.1954 and not in accordance with revision of the scales os pay and allowances of oricars- and executives of the Nationalized Insurance Corporations as laid down in Finance Division letter No. D.O.No. 1(1)/lmp./94, dated 23.1.1994; that this fact was already known to the Appellant, but he did not challenge the circular No. P&GS/PO/16/94, dated 25.5.1994 and instead of that he claimed full and free medical facilities belatedly after nine years of issuance of circular dated 25.5.1994, as such, the appeal is extremely time-barred, without having any cause of action.
3. The learned Counsel for the Appellant has strenuously argued that the Appellant being retired officer of SLIC is entitled to the post retirement medical facilities as applicable to the serving officers, In support of such argument, the learned counsel has relied on the revision of scale of Pay and Allowances etc., of officers and executives of the Nationalized Insurance Corporations as decided by_ the President of Pakistan, vide Finance Division letter No. D. O.No. 1 (1)/lmp./94, dated 23.1.1994 effective from 01.1.1993. The learned counsel has further relied on Government of Pakistan Finance Division (Regulations Wing) No. 1519-R.4/1995, dated 05.1.1995 whereby medical facilities to retired officers were allowed as admissible to serving employees and the SUC was directed that the action may be taken accordingly. The learned Counsel for the Appellant has argued that in accordance with Section-25 of the Life Insurance (Nationalisation) Order, 1972, a Corporation is to be guided by direction of the Central Government, the Respondents had deviated from the policy and directions of the Federal Government and . Had arbitrarily, illegally and without lawful authority issued circulars whereby the medical facilities allowed to the retired officers of SLIC had been restricted/ctirtailed and post retirement medical facilities as applicable to the serving officers have been declined; that the applicant has been discriminated against as the other Nationalized Insurance Corporation have been providing medical facilities to their retired officers like thafof the serving officers in accordance with the same policy directives based on the recommendation of the Pay and Pension Committee, in this connection the learned Counsel for the Appellant relied on judgment dated 30.6.2003 of Federal Service Tribunal in appeal No. 119(L)CE/2002, which judgment has been upheld by the Hon'ble Supreme Court vide judgment dated 28.10.2003 in Civil Petition No. 1881 of 2003 and the appeal of National Insurance Co. Itd., has been dismissed.
4. The learned Counsel for the Respondent No. 2 has contended that the SLIC is an autonomous body/corporation established under the Life Insurance, Nationalization) Order, 1972 ("LINO) and under Article-14(3) of the LINO, the Respondent is under duty to act on the basis of sound business principles in discharge of any of its functions; that the Insurance Laws lay much emphasis on protecting the interest of policy-holders of Respondent No. 2 that the Appellant being an officer and in the service, at the tirrie when the circular dated 25.5.1994 was issued, has full knowledge of the said circular and he was prevented from challenging the said circular after lapse of a period of nine years; that the Appellant had no cause of action, therefore, the appeal is liable to be dismissed.
5. From the above arguments of the learned counsel for the parties, the crucial question that arises for determination in this appeal is: "Whether the Appellant is entitled to' medical facilities, as recommended by the Pay and Pension Committee or He is entitled to the medical facilities in. Accordance with circular dated 25.5.1994.
For determining the above question, it will be advantageous to refer to documents, relied upon by the counsel for the parties.
No.1 (2)/88.0ns.l GOVERNMENT OF PAKISTAN MINISTRY OF COMMERCE Islamabad, the 29th Jan., 1999 The Chairman SLIC, P.I.C. And N.I.C.
Karachi.
Subject: REVISION OF SCALES OF PAY AND ALLOWANCES ETC. OF OFFICES AND EXECUTIVES OF THE NATIONALIZED INSURANCE CORPORATIONS.
Dear Sir, I am directed to refer to the subject noted above and to enclose a copy of Ministry of Finance's Q.O.
Letter No.1 (1) lmp/94, dated 23.1.1994 for taking further necessary action at your end.
Yours faithfully, Sd/- (Muhammad Jamil)
Section Officer."
"Roshan Ali.Mangi Joint Secretary (R-l)
Phone:820923 Ministry of Finance Government of Pakistan D.No. 1 (1) lrnp/94 Islamabad the January 23,1994.
Subject: REVISION OF SCALES OF PAY AND ALLOWANCES ETC. OF OFFICERS AND EXECUTIVES OF THE NATIONALIZED INSURANCE CORPORATIONS.
My dear Secretary, The President has been pleased to revise the existing pay scales of Officers and Executives of the Nationalized insurance Corporations. The revised pay scales shaft be deemed to have come into force from 01.01.1993.
2. PAY SCALES: The revised scales of pay as shown in Annexure-I to this letter shall replace the existing scales of pay.
3. INITIAL FIXATION OF PAY: In the case of existing Officers/Executives-{i.e. Those who have been in the service since before 01.01.1993) the initial pay in the relevant revised scales of pay shall be fixed at the stage equal to or, if there is no stage, at the stage next above the amount arrived at by allowing an increase of 35% over the existing basic pay i.e. Pay in the revised pay scales (not legible) on 01.01.1993. The ad hoc relief/increases allowed since 01.01.1990 to: 31st December, 1992 are included in 35% increase and will cease to be admissible from 01.01.1993. "
4. ANNU AL INCREMENT: The annul increment shall continue to be payable on 1st January each year.
5. ALLOWANCES AND FRINGE BENEFITS: Allowances and fringe benefits have been revised as given in Annexures-ll A&B.
6. The periodical revision of allowances, fringe benefits and perquisites should be linked with the size and profitability of each institution. For this purpose an appropriate framework will be designed by the Ministry of Finance in consuItation with the institutions for the approval of the Prime Minister.
7. I shall be grateful if you would kindly take immediate steps to issue administrative orders incorporating the above revision.
With regards.
Your sincerely, Sd/- (ROSHAN ALI MANGI)
Brig. Qureshi M, Aslam Hayat, Secretary; Commerce Division,.
Government of Pakistan, Islamabad.''
"STATEMENT SHOWING THE EXISTING RATES OF ALLOWANCES/FRINGE BENEFITSADMISSABLE TO OFFICERS OF STATE LIFE . INSURANCE CORPORATION."
1...........................................
2 ........................
3. .......... .4 ...........................................
5 ............. ;............
6. ..........................
7. ........ , 8...........................................
9. ................
10..................
11. ......................
12.................................
13. Medical Facility to Retired Officers.
May be allowed as admissible to serving bmployees.
14. ,.........................
"STATEMENT SHOWING THE EXISTING RATES OF ALLOWANCES/FRINGE BENEFITS ADMISSIBLE TO OFFICERS OF PAKISTAN INSURANCE CORPORATION/NATIONAL INSURANCE CORPORATORS.
12. Post Retirement Facilities. . , As applicable to the serving officers."
"GOVERNMENT OF PAKISTAN FINANCE DIVISION (Regulation Wing)
No. 1514- Islamabad, the 5th January, 1995.
R.4/1995 OFFICE MEMORANDUM Subject: Anomalies in respect of pay, allowances and other benefits of the officers of the nationalize^ insurance corporation.
(A) ....... ...
2.
3. Medical Facilities to retired officers: The Government has decided that the medical facility to the retired officers of SLIC may be allowed as admissible to serving employee. Action in this respect by the SUC may be taken accordingly."
Medical facilities to the serving officers of SLIC as per 12.7.1989 is as under: "13. Medical Facilities and Entitlement:
1. Free Medical attendance and Treatment:
(a) An officer and his family (excluding dependant parents) shall be entitled to free medical attendance and treatment from the authorized medical .Attendant at the Corporation's cost, without any limit. (Medical Attendance Reg.3).
(b) If the authorized medical attendant is of the opinion that owing to the absence or remoteness of an approved hospital dr because of the nature of his ilIness, the employee cannot be removed to an approved hospital without endangering his heaIth, the employee may receive medical attendance and treatment at his residence"
"LIFE INSURANCE (NATIONALISATION) ORDER, 1972,
25. Corporation to be guided by the directions of Central Government In the discharge of its functions under this Orders a Corporation shall be guided by such directions in stich matters of policy involving publicinterest-as thq Pentral Government may give to it in writing; and if any question arises whether a diFeptipn relates to a matter of policy involving public interest the decision of the Government thereon shall be final"
6. As against the above orders/directions of the Federal Government, the SLIG curtailed/restricted the medical facilities to its retired officers through circular dated 25.5.1994, which is reproduced as under: - "STATE LIFE INSURANCE CORPORATION OF PAKISTAN PRINCIPAL OFFICE, KARACHI.
Dated 25.05.1994 P&GS DIVISION Ref: PL-2(5)
CIRCULAR NO. P&GS/PO/16/94 Sub: MEDICAL FACILITY AFTER RETIREMENT TO OFFICERS OF STATE LIFE.
It has been decided to extend medical facility to officers of the Corporation who retired from the services on or after 01.01.1993 on the following lines with immediate effect.
(i) The grant of post retirement medical facility to officers of the Corporation will be confined to the life time of the officers who:"-
(a) retired from the service of the Corporation on superannuation after completing 25 years of service.(b) retired on medical grounds.
(ii) The post retirement medical facility will be allowed to those officers only who have opted for pension. 1
(iii) The annual monetary ceiling of' one month's pay last drawn by the officer would apply to theadmissible facilities under each of the following , heads:-
(a) Medical Attendance/Cost of Medicines:
(b) Specialist fee/Diagnostic Tests; and
(c) Hospitalization.
2. The rules and regulations/procedure for adopting the above-said facility will be circulated in due course.
3. This would further be subject to the condition of production of a certificate by the officer himself that he is . Not working any where.
4. This would not be applicable to those retired officers who proceeded/residing abroad.Sd/- (Usuf Bhai)
Deputy General Manager (P&GS)"
7. A perusal of the above material, reproduced above, shows that serving officers of the SLIC were provided free medical attendance and treatment in accordance with the inter-office communication of the Respondent No. 2 dated 12.7.196S. Thereafter, the recommendation of the Pay and Pension Committee were- enforced under the orders of the President of Pakistan.
Accordingly, pay scales were revised and medical facilities to the retired officers of the Nationalized Insurance Gorpqjattens (including the SI4C) were allowed like that of the serving officers. However, periodical revision of allowances, fringe benefits and { perquisites was made subject to approval of the Prime ! Minister on the basis of an appropriate framework to be designed b/the Ministry of Finance in consuItation with the concerned institution. As against the Presidential order, the Board of SLIC revised the, medical facilities to its retired officers,'without obtaining the approval of the Prime Minister, as mentioned above, vide its circular dated 25.5.1994. Not only the medical facilities were revised, but the same were revised downward to the detriment of the retired officers, who after the life iong service and due to old age needed even better facilities than the serving officers. Surely, the SLIC, being a commercial organization, had to protect and learned counsel the replies of both the letters of the Appellant by the Respondent No. 2 clearly speIt out and implied a denial on their part to prov/de medical facilities to the Appellant like that of the serving officers. The learned Counsel for the Appellant also argued that in their written comments the Respondent No. 2 had denied the medical facilities to the Appellant, who is a retired officer of the SLIC, like that of serving officers, which constituted sufficient cause of action accrued during the pendency of the appeal, to approach the Service Tribunal for redress of his grievance. On the point of limitation, the learned Counsel of the Appellant has argued that the appeal involved financial facilities hence, the provisions of Law of Limitation do not strictly apply to the case of the Appellant, as each day of denial of medical facilities to the Appellant would prowde to him a fresh cause of action in support of his argument on the point of limitation, the learned Counsel for the Appellant has cited 1994 PLC (CS) 400 and PLD 2003 SC 724. We find force in the arguments of the Learned Counsel for the Appellant on the point of limitation and cause of action. Delay, if any , seeking medical facilities by the Appellant is hereby condoned.8. After carefully considering the arguments of the learned counsel for the parties, as also the material available on record, we have come to the conclusion that the Respondents were bound to follow the policy directives of the Federal Government, but they unlawfully deviated from the same in revising the medical facilities to the retired officer without any lawful authority. As such, the Appellant is entitled to the medical facilities like the serving officers of SLIC. We, therefore, in the circumstances of the case and for the reasons, mentioned above, allow this appeal with direction to the Respondents to withdraw the circular dated 25.5.1994 within a period of two months from the date of receipt of a copy of this judgment, and allow the Appellant medical facilities like that of its serving officers. The Appellant shall also be entitled to reimbursement of the expenses he incurred towards medical facilities since thedate of his retirement. *9. Appeal is disposed of accordingly.10. No order as to costs.11. Copies of this Judgment be sent to the parties under registered cover and to the relevant quarters as per Rule-21 of the Service Tribunal (Procedure) Rules, 1974.Appeal Allowed.