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2013 PLC 143

Syed IMRAN ALI SHAH vs GOVERNMENT OF PAKISTAN through Secretary

Citation2013 PLC 143
CourtLahore High Court
Judge(s)Muhammad Khalid Mehmood Khan
ResultPetitions allowed

' MUHAMMAD KHALID MEHMOOD KHAN, J.--- Through this single judgment, I propose to decide two writ petitions (W.P.No,1579 of 2012 and W.P.No,5081 of 2012), involving same questions of law.

2. The facts as per the petition are that the petitioner is working as a Senior Assistant with the Employees Old Age Benefits Institution (hereinafter referred to as "EOBI" or INSTITUTION). The affairs of EOBI are run and managed by a Board of trustee constituted under section 7 of the Employees Old Age Benefits Act, 1976 (hereinafter referred to as "Act of 1976"). The purpose of the Act of 1976 is inter alia to provide old age benefits to the persons employed in Industrial, Commercial and other organizations. The EOBI has liquid cash of more than Rs,199.00 billion in addition to other assets.

After the 18th amendment in Constitution of Islamic Republic of Pakistan, the EOBI become a Provincial subject. The Ministry of Inter Provincial Coordination on 1-7-2011 issued a direction to the Board of Trustee not to utilize the institution's funds except for making payments for old age pensions, salaries, utility bills and routine office expenses such as POL etc.

3. As per policy and practice, the institution always used to purchase real estate on depreciated value. In the 86th meeting of Board of trustees dated 20-10-2009, the Board decided not to purchase any real estate from private persons or through private treaty. The same directions were also issued by the Public Accounts Committee of the Parliament.

4. The petitioner asserts that the Cabinet Division vides Notification dated 29-7-2011 has illegally assigned the administration and control of the Institution to the Human Resources Development Division only to facilitate plundering of the assets of the Institution. The respondent No,4 under the umbrella of the illegal Notification started purchasing real estate on highly inflated prices in violation of Investment Rules of the Board from private persons only with the mala fide intention to gain illegal benefits for himself and for his patron-in-in chief who appointed him.

5. The respondent No,1 has illegally reconstituted the Board of trustees vide Notification dated 3-1- 2012 in violation of the Act of 1976 and rules framed thereunder only to provide protection to the illegal acts of respondent No,4. The details of the properties agreed to be purchased are given in the petition. The petitioner asserts that respondents are misappropriating the funds of destitute, poor and low paid retired employees. The respondent No,4 has appointed 200 political workers illegally against the settled principal of law and the rules. The petitioner further asserts that after the 18th amendment in Constitution of Islamic Republic of Pakistan, the respondent No,1 has no authority to deal with the affairs of the Institution and as such every act of the Federal Government and the respondent No,4 in this regard is illegal, mala fide, and without lawful authority. The petitioner prays as under:- "In view of the above, it is respectfully prayed that by allowing this Writ petition, the respondent No,1 /Federal Government and respondent No,2/Chairman of the Institution may kindly be restrained from setting up new Board of Directors and to exclude the petitioner from current Board of Directors.

' It is further prayed that Notification of Federal Government (Annexure-H) may very kindly be directed to have been passed against the provisions of the Constitution and be declared to have no legal effect.

' It is further prayed that any independent impartial agency of the Government may very kindly be directed to take cognizance of the illegalities in plundering the billions of rupees belonging to the retired old-age labourers to bring the culprits before the courts of law to face the music."

6. The petition was admitted for regular hearing and on 2-3-2012 through an interim order respondent No,4 was directed as under:- "C.M:No,2/2012.

4. Subject to notice, respondents Nos.2 to 4 are restrained to take any action towards utilization of funds of EOBI and to pass any adverse order against petitioner, till the next date of hearing."

7. The respondents Nos.2 to 4 filed replies and objected the very maintainability of petition on the ground that impugned Notification No,(S.R.O.121(I)/2010) dated 3-1-2012 has been issued under a valid Federal Law protected under, clause (6) of Article 270-AA of Constitution of Islamic Republic of Pakistan.

8. The so-called dispute if any is between Provincial and Federal Government and only the Hon'ble Supreme Court of Pakistan has the jurisdiction under Article 184(1) of the Constitution to resolve the said dispute if any. The petitioner has not approached the Court with clean hands and as such is not entitled to grant of any equitable relief.

9. On facts all allegations of the petitioner are denied, claiming that the Federal Government enjoys the powers to run and manage the affairs of Institution even after the 18th amendment to Constitution of Islamic Republic of Pakistan. The respondent No,1 adopted the reply of respondents Nos.2 to 4.

10. From the pleadings of parties the only issue that requires determination is what is the effect of 18th amendment to the Constitution of Islamic Republic of Pakistan qua the EOBI Act of 1976.

11. The Employees' Old Age Benefits Act, 1976 (Act No,XIV of 1976) was promulgated by the Parliament and was published in Gazette of Pakistan on 15th April 1976, the preamble of the Act shows the necessity of Act as under:--- "WHEREAS it is expedient to repeal and re-enact the law relating to old-age benefits for the persons employed in industrial, commercial and other organisations and matters connected therewith; "

12. The Federal Government has framed rules vide SRO-802(I)/76 dated 9-8-1976 Employees' Old Age Benefits (Constitutional) Rules, 1976.

13. It is an admitted fact that Act of 1976 was enacted by the Parliament when the subject of labour was a part of concurrent legislative list. Through the 18th amendment, the concurrent legislative list was omitted and Article 270AA was inserted as under:- "270AA. Declaration and continuance of laws etc.--- (1) The Proclamation of Emergency of the fourteenth day of October, 1999, the Provincial Constitution Order No,1 of 1999, the Oath of Office (Judges) Order, 2000 (No,1 of 2000), Chief Executive's Order No,12 of 2002, Chief Executive's Order No,19 of 2002, the amendments made in the Constitution through the Legal Framework Order, 2002 (Chief Executive's Order No,24 of 2002), the Legal Framework (Amendment) Order, 2002 (Chief 'Executive's Order No,29 of 2002) and the Legal Framework (Second Amendment) Order, 2002 (Chief Executive's Order No,32 of 2002), notwithstanding any judgment of any Court including the Supreme Court or a High Court, are hereby declared as having been made without lawful authority and of no legal effect.

(2) Except as provided in clause (1) and subject to the provisions of the Constitution (Eighteenth Amendment) Act, 2010, all other laws including President's Order, Acts, Ordinance, Chief Executive's Orders, regulations enactments, notifications, rules, orders or bye-laws made between the twelfth day of October, one thousand nine hundred and ninety-nine and the thirty-first day of October, two thousand and three (both days inclusive) and still in force shall, continue to be in force until altered, repealed or amended by the competent authority. Explanation. ........................................................................

(a)

(b) .

(3)

(a)

(b (4)

(5)

(6) Notwithstanding omission of the concurrent Legislative List by the Constitution (Eighteenth Amendment) Act, 2010, all laws with respect to any or the matters enumerated in the said List (including Ordinance, Orders, rules, bye-laws, regulations and notifications and other legal instruments having the force of law) in force in Pakistan or any part thereof or having extraterritorial operation, immediately before the commencement of the Constitution (Eighteenth Amendment) Act, 2010, shall continue to remain in force until altered, repealed or amended by the competent authority.

(7)

Notwithstanding anything contained in the Constitution, all taxes and fees levied under any law in force immediately before the commencement of the Constitution (Eighteenth Amendment) Act, 2010, shall continue to be levied until they -are varied or abolished by an Act of the appropriate legislature.

(8) On the omission of the concurrent Legislative List, the process of devolution of the matters mentioned in the said List to the Provinces shall be completed by the thirtieth day of June, two thousand and eleven.

(9) For purposes of the devolution process under clause 8 the Federal Government shall constitute an Implementation Commission as it may deem fit within fifteen days of the commencement of the Constitution (Eighteenth Amendment) Act, 2010."

14. Article 270AA protects the legislation under the then concurrent legislative list, until the existing laws are amended altered and repealed. The plain reading of Article will show that word used are "altered" "repealed" or "amended", meaning thereby that the Provinces may alter, amend or repeal the existing law. However, no language has been used to the, effect that till amendment, alteration or repeal is undertaken by the provincial government, the management and control of EOBI will continue to remain with the Federation or the Act of 1976 will remain a Federal law.

15. The argument of learned counsel for petitioner is that after the 18th amendment, the Federation has lost control over the Act of 1976 and any Notification, instruction issued by the Federation after the Amendment for regulating the affairs of EOBI is without lawful authority and the only authority left with the Federation is to constitute a commission for regulating and supervising the devolution process, and the maximum time provided for completing the devolution is only one year.

16.The learned counsel for the petitioner submits that under Article 97 of the Constitution, the Executive Authority of the Federation is restricted to those matters for which the Parliament has the power to make laws. The proviso to Article 97 of the Constitution further clarifies the authority of Federation.

17. The learned counsel submits that when the Parliament has no power to legislate on a subject how can it be claimed that the executive authority under the Act of 1976 could be exercised by the Federation. His precise argument is that after the 18th amendment, all Provinces of the Federation enjoy the right to exercise executive authority on all matters which were a part of the concurrent legislative list. The Federation has wrongly withheld the process of devolution. He submits that the Federal Government under Article 270AA(9) of the Constitution was bound to constitute an implementation Commission within 15-days, the life of said Commission is only one year. The Commission does not enjoy any authority to exercise executive authority upon devolved subjects beyond its given mandate which is limited in scope and extent. The 18th amendment became a part of the Constitution on 19-4-2010. On the said date the Act of 1976 became a Provincial subject.

To support his argument, the learned Counsel has relied on Air League of PIAC Employees through President v. Federation of Pakistan M/O Labour and Manpower Division Islamabad and others (2011 SCM R 1254).

18.The argument of learned counsel for respondents is that despite the fact that concurrent legislative list stands omitted, the Act of 1976 remains Federal Legislation and the Federation enjoys the power to administer and run the affairs of EOBI until altered, amended or repealed, by the competent authority. The dispute (if any) is between the Provinces and the Federation which can be redressed under Article 153 of the Constitution in the Council of Common Interests. It is further argued that a new, item No,13 has been added in the Legislative list Part II and the Federation has the power to enact laws for Inter Provincial matters and Co-Ordination. The learned Counsel has relied on Messrs Elahi Cotton Mills Ltd. And others v. Federation of Pakistan through Secretary M/o Finance, Islamabad and 6 others (1997 PTD 1555), Shamas Textile Mills Ltd. And others v. The Province of Punjab and 2 others (1999 SCM R 1477), Federation of Pakistan v. Aitzaz Ahsan and another (PLD 1989 SC 61) and Messrs E.F. U. General InsuranceCo. Limited v. The Federation of Pakistan and others (PLD 1997 SC 700).

19. The question thus is what will be the status of the Act of 1976 after the 18th amendment? What do the Provinces have to do under Article 270AA (6) of the Constitution? Whether the Federation can exercise its executive authority for regulating and controlling the affairs of EOBI? For example if the Inter Provincial Commission fails to complete the process within tirrie provided by the Constitution what will be the effect of commission's failure? Whether time for devolution can be extended by the Federation through an executive order? Whether the Federation can form new ministries and attach different divisions with these ministries to deal with matters which are now the provincial subjects under the Constitution? Whether under item 13 of the Federal Legislative List Part II the Federation has the power to legislate the subject of labour which is no longer a part of the Federal Legislative List after the 18th amendment? What is the true meaning of devolution?

20. The Parliament adopted the 18th amendment for revival of Constitution of 1973 in its original form. After 1973, successive dictatorial regimes infected the Constitution by amending it according to their choice, no doubt with the consent of the parliament. One of the dictators even got his name inserted in the Constitution. It is also an admitted fact that the dictatorial amendments were approved by the parliament but certainly that was under peculiar circumstance. In the year 2007 the Lawyers, Civil Society and Media through an unprecedented movement successfully managed to restore democracy. The present Parliament gained confidence and decided to disinfect the Constitution and to bring it in its original form. It decided to amend the Constitution. The Parliament unanimously adopted the 18th amendment, in addition to others. One of the purposes of the said amendment was to provide maximum autonomy to Provinces and to close the doors to unconstitutional invasions against democracy and the Constitution.

' The preamble of the 18th Amendment reads as sunder:--- "AND WHEREAS the people of Pakistan have relentlessly struggled for democracy and for attaining the ideas of a federal, Islamic, democratic, parliamentary, and modern progressive welfare State, wherein the rights of the citizens are secured and the Provinces have equitable share in the Federation."

21. The Parliament while unanimously adopting the 18th amendment refused to accord indemnity to the unconstitutional and extra Constitutional acts of 3rd November 2008 of the dictatorial regime for the first time since the Country gained independence.

22. The learned counsel for respondents have relied mostly on those judgments in which either the constitutional amendments made by dictatorial were challenged, regimed or certain statue was assailed on the touch stone of ultra vires to the Constitution. In the present petition the amendment is not under challenge. The challenge is to the status of the executive authority with reference to Act of 1976. As such the judgments relied upon by the respondents are not helpful for dilating upon the present issue.

23. A plain reading of Article 270AA shows that it is a declaration of repeal of certain enactments and continuance of a number of others. The enactments referred to in Article 270AA(1) have been declared without lawful authority.

24. The explanation to Article 270AA(1) declares the enactments referred to in sub-Article (1) to be without lawful authority, meaning thereby the laws referred to in sub-Article (1), notwithstanding the (earlier) declarations of the Hon'ble Supreme Court of Pakistan and the High Courts will be deemed not to be enacted.

25. Sub-Clause (2) of Article 270AA however saves legislation which was enacted between 12th October, 1999 to 13th December 2003 and which is still in force. It has been stated that such legislation shall continue to be in force until altered, amended or repealed by the competent authority. In the present petition none of the laws mentioned in Sub-Article (2) of Article 270AA is under attack hence there is no need to dilate upon this aspect at this stage.

26. In the present petition, the enactment under discussion is the EMPLOYEES OLD AGE BENEFITS ACT, 1976 (ACT NO.XIV OF 1976). The said Act was gazetted on 5-4-1976.

27. As the preamble of said Act shows it pertains to the subject of labour. Admittedly subject of labour found mentioned in Item Nos.26, 27 and 28 of the concurrent legislative list. Thus the Parliament enacted the said law.

28. After the 18th amendment, the concurrent legislative list was omitted from the Constitution, meaning thereby that the Federation's power to enact laws on the said subject ceased to exist. The power of the Federation to legislate is now limited to items referred in Federal Legislative List including Part II under Article 70(4) of the Constitution.

29. Part-V Chapter-I of the Constitution provide the distribution of legislative powers between the Federation and the Provinces.

30 Article 142 provides as under; ---142. Subject to the Constitution---

(a) [Majlis-e-Shoora (Parliament) shall have exclusive power to make laws with respect to any matter in the Federal Legislative List; [(b) Majlis-e-Shoora (Parliament) and a Provincial Assembly shall have power to make laws with respect to criminal law, criminal procedure and evidence,] [(c) Subject to paragraph (b), a Provincial Assembly shall, and Majlis-e-Shoora (Parliament) shall not, have power to make laws with respect to any matter not enumerated in the Federal Legislative List;] [(d) Majlis-e-Shoora (Parliament)] shall have exclusive power to make laws with respect to all matters pertaining to such areas in the Federation as are not included in any Province].

31. Article 143 deals with the inconsistency between Federal and Provincial Laws.

32. Under Article 142(a) Parliament (Majlis-e-Shoora) has the exclusive powers to enact laws regarding any matter which is referred to in the Federal Legislative List. Likewise under Article 142(C) subject to Sub-Article (b) of Article 142, the Provincial Assembly has the exclusive power to make laws regarding matters which are not mentioned in the Federal Legislative List. Further, only three items are available as per Article 142(b), for concurrent legislation by Parliament and Provincial Assemblies. Labour is not one of the said three items. Consequently it can safely be said that labour falls within the exclusive legislative domain C of the Provincial Assemblies.

33. The above provisions of the Constitution will show that there is only one Federal legislative list read with Article 142(b) within the legislative domain of Parliament and all remaining items came under the legislative domain of Provinces.

34. After the 18th Amendment a number of enactments become provincial subjects including the Act of 1976. The Parliament while amending the Constitution has saved those enactments which came under the domain of Provinces as a result of the amendment. Article 270AA provides that these laws will continue to remain in force until altered, Amended or repealed by the competent authority. The competent authority has also been provided in Article 270AA.

35.

A plain reading of said article will show that, enactments of concurrent legislative list ipso facto became Provincial laws and these enactments will continue remain in force in their present form.

However, the competent authority shall have the powers to alter, amend and repeal these laws.

The wisdom for providing life to these laws seems to be that these laws including Act of 1976 are permanent laws and not sunset or temporary laws. Further in case of EOBI Act, the Institution has the assets and liabilities which have to be distributed among the provinces according to their agreed share. In addition the provision is designed to provide continuity without the necessity for undertaking fresh legislation while saving the right of the provinces to alter, amend or repeal the law.

36. The word devolution used in Article 270AA (8) is intentional as the assets and liabilities of the institution 'under the Act of 1976 will have to be distributed and transferred to the Provinces. This is the reason why the time frame of one year has been provided for completing the devolution process.

37. the dictionary meaning of word devolution is: "the act or fact of devolving: passage award from stage: the passing on to the successors of an unexercised right."

38. Oxford English dictionary "the transferring of power by central government to local or regional government, devolve transfer power to a lower level responsibility pass on." The legal meaning: the passing of property from one to other, as by hereditary succession, degeneration." .

39. The Blacks Law dictionary defines devolution as: transfer mode of disposing of or parting with an asset or an interest in an asset, legal succession, meaning the succession established by law."

40. In Article 270AA(6) the word devolution process means the process transfer of assets as the Parliament has assigned powers to the Federal Government to constitute an Implementation Commission within 15 days for supervising and regulating the transfer of assets and liabilities within one year.

41. The argument of Learned counsel for respondents is that Act of 1976 will remain Federal Law until altered, amended or repealed, does not find support from the wording of Article 270AA(6). The parliament left the option for the Provinces that they may continue with the already enacted law, or alter, or amend the same. And if they think that existing law will not cater to their requirements, they may repeal the law and enact a new law, If the intention of parliament was that unless altered, amended and repealed the Act of 1976 will remain federal law, the Parliament could have made it clear that till its alteration, amendment or repeal the enactment will remain the Federal law, or the executive authority qua the Act of 1976 will remain with the Federation. The words used are that the law will remain in force. This means that the system and framework under the Act .1976 will remain intact as millions of beneficiaries of the Act are receiving their old age pension and millions of contributors are depositing their contributions. The purpose of establishing the Implementation commission further clarifies the intention of the legislators. The commission will be the supervisor of the devolution process, meaning thereby the commission will oversee the affairs of the Institution to a limited extent only till the process of devolution is completed within the given period. The Commission is empowered only to manage the necessary and urgent affairs of the Institution as the Executive Authority of Federal Government ceased on the day that the 18th amendment became a part of Constitution. The seriousness of the Parliament is evident from the fact that only 15 days time was allowed to the Federal Government for constituting the Implementation Commission. There is no doubt in my mind that the said period of one year and 15 days could not be extended through any executive order. Hence the fixation of time of one year and 15 days is intentional and the matter of its extension (if required) remains within the exclusive power of the Parliament.

42. The Federal Government has constituted the commission which rightly took over charge of Institution and issued directions on 1-7-2011, restricting the functions of Institution.

43. The Federal Government under Article 97 of the Constitution can exercise its executive authority only with respect to those matters which fall within the domain of Parliament. The rules of business of 1973 are meant to facilitate running the affairs of Federal Government. If the Federal Government has no powers in relation to Provincial laws, how can the Prime Minister Exercise powers relating provincial matters in purported exercise of his executive authority.

44. The argument of Learned Counsel for respondent is that like labour, the subject of education has also devolved upon the Provinces under Article 270AA but under sub-Article (6), the executive authority remains with Federation. He has relied on Fiaqat Hussain and others v. Federation of Pakistan through Secretary, Planning and Development Division and others (PLD 2010 SC 224).

45. Admittedly, education is a fundamental right of a citizen/For this reason Article 25-A was added to the Constitution through the 18th amendment. It reads as follows:--- 25-A. Right to education.--- The State shall provide free and compulsory education to all children of the age of five to sixteen years in such manner as may be determined by law.

46.

Further, Items Nos.12, 15 and 17 of. Part II of the Federal Legislative List is related to the subject of education. The Hon'ble Supreme Court of Pakistan has held that legislative right of Federation on the subject of education still holds the field. However, the subject of Labour after the omission- of concurrent legislative list stands transferred and has fallen in the domain of Provinces. No entry is available in the Federal Legislative list relating to the subject of Labour. The argument of learned counsel is that Item No,3 is directly related to subject of Labour, as the Federation is the signatory of the International Labour Organizations, Labour treaties and agreements. As such the Federation still enjoy the powers to legislate on the subject of Labour. Entry No,3 reads as under:---

3. External affairs, the implementing of treaties and agreements, including educational and cultural pacts and agreements, with other countries: extradition, including the surrender of criminals and accused persons.

47. The word implementing treaties and agreements denotes that the Federation can legislate law for implementing the International conventions, treaties and agreements, but if main subject of labour is within the legislative domain of province, the Federation can direct the Provinces to implement international treaties, agreement etc., and frame laws in conformity with the International Labour Conventions. The scheme of the Federation of Pakistan is based on the concept of Cooperative Federalism and the Federation has the authority on behalf of Provinces to sign international agreements, treaties and give guarantee for their implementation. As such the Provinces are bound to honour the commitments of the Federation made through International treaties and conventions. Provinces cannot legislate in violation of International conventions or undertakings and guarantees extended by the Federation. In my humble opinion item No,3 gives authority to Federation to legislate only to the extent of honouring its undertakings and guarantees to the International Community. If the argument of learned counsel is accepted that under item No,13 the Federation can legislate on the subject of Labour, the very purpose of omitting the concurrent list will be defeated. It cannot be presumed that any Provincial Assembly will bring legislation in violation of the undertakings and guarantees of Federation given to the International Community. Further the issue in hand is about the ownership of Act of 1976 and its executive authority. It is no anybody case that the Act of 1976 stands repealed and the dispute relates to exercise executive authority to the effect as to whether it is to be exercised by the Federation or the Province.

48. The other argument of Learned Counsel for the respondent is that after the insertion of item No,13 in Part II of the Federal Legislative List the Federation has the authority to Legislate on the subject of Labour. Item No,13 reads as under:--- "13. Inter-Provincial matters and Coordination."

49. A bare reading of the item itself shows that it relates to Inter Provincial matters and Coordination. At present the Provinces are not agitating any dispute with each other. The Federation no doubt can legislate under item No,13 when the issue relates to the matters between the Provinces and Coordination between the Provinces. This item has no relevance with the executive authority under an existing law which is the subject matter of Article 270AA (6); The Article itself provides that within one year, the Devolution process has to be completed under the supervision of Implementation Commission which has to be constituted by the Federation within 15 days. Further, as discussed above, both the provisions i,e,, one Year of devolution Process and constitution of Implementation Commission are time specific and the power of extension of the time frame rests with the Parliament.

50. It is an admitted proposition of law that while interpreting law, the intention of legislature could only be gathered from the whole enactment. In interpretation of written instrument, whether it is constitutional or ordinary statute, the court has to discover the intention of the author and the whole instrument or statute has to be read together. If we examine the preamble of 18th amendment, and its back grounds things become clear.

51. The most important words used in the preamble are "the Provinces have equal share in the Federation" Keeping in view of the intention of legislation [specially the lawyers , civil society and media movement for restoration of democracy], we have to examine the amendment of Article 270AA as a whole, particularly Article 270AA (6), (8), (9) the Federal Legislative list read with the principal of "Generalia Specialbus non derogation" (general words or provision do not affect special words or provision). The 18th amendment was adopted under special and peculiar circumstances. Its language and intent must to prevail over the general items of the Federal Legislative List.

52. There is another aspect of this case. After the omission of concurrent Legislative List, the position of Federal Government is like the Speaker of dissolved National Assembly. Under Article 53 of the Constitution, the National Assembly elects his Speaker. Under Article 53(8) of the Constitution the Speaker remains the Speaker, even in the absence of National Assembly. He no longer enjoys any constitutional authority to summon the assembly or exercise any other power except to await till the person elected by the next assembly/enters upon his office. Same is the case of executive authority of the Federation after the 18th amendment vis-a-vis the Act of 1976. In the present case the legislature itself addressed this issue by directing the formation of an Implementation Commission within 15-days. The Implementation Commission is required to supervise the devolution process. This shows that the law makers have substituted the executive authority of Federation (which ceased to exist with reference to the Act of 1976 by virtue of provisions of the 18th amendment) with the Implementation Commission with limited powers to facilitate a smooth and seamless process of devolution, and to hurdle ancillary matters in the interregnum. The intention of legislative is clear that Federation no longer has an executive authority qua the Act of 1976.

53. The question what will happen if the Implementation Commission fails to complete his assigned job is pre-mature at this stage and I neither feel the need nor the necessity to answer the same. The Federal Government has taken over the authority of the Implementation ommission by issuing Notification No .4-10/2011-Min-1 dated 29-7-2011. As such the Implementation Commission is unable to perform its duties. The Implementation Commission took charge vide letter No,F.No,1 (9)/2010-EOBI dated 1-7-2011. The letter dated 1-7-2011 was superseded by the Notification dated 29-7-2011. This shows the Implementation Commission was never allowed to complete its assigned job. Could the Federal Government have done so? In view of the fact that it no longer enjoyed executive authority in the matter, the answer has to be in the negative.

54. The interpretation of Article 97 of the Constitution came before the Hon'ble Supreme Court of Pakistan in Societe Generale De Surveillance S.A. v. Pakistan through Secretary, Ministry of Finance, Revenue Division, Islamabad (2002 SCMR 1694). The apex Court examined the matter as follows:-- -

26. Article 97 of the Constitutioh only provides that subject to the Constitution, the executive authority of the Federation shall extend only to those matters with respect to which Majlis-eShoora (Parliament) has the power to make laws, including exercise of rights, authority and jurisdiction in and in relation to areas outside Pakistan. Fourth Schedule embodies the list of those matters with respect to which Majlis-e-Shoora has the power to make the laws, Item 3 of which is very relevant which reads as under:--- "3. External affairs; the implementing of treaties and agreements, including educational and cultural pacts and agreements, with other countries;, extradition, including the surrender of criminals and accused persons to Governments outside Pakistan."

' Since Majlis-e-Shoora has the power to make laws in respect of these matters, therefore, by virtue of Article 97 of the Constitution, the Federal Government, of Pakistan has the power to exercise executive authority in respect thereof which was exercised to ratify the treaty, but it has not conferred power on the executive authority to legislate a Statute.

55. In the Indian jurisdiction the question of exercise of executive authority of Governor arose before the Indian Supreme Court. The Chief Justice of India Supreme Court Bhagwati, C.J.

Speaking for the Court held as under:--- "It is settled law that a constitutional authority cannot do indirectly what it is not permitted to do directly. If there is a constitutional provision inhibiting the constitutional authority from doing an act, such provision cannot be allowed to be defeated by adoption of any subterfuge. That would be clearly a fraud in the constitutional provision. This is precisely what was pointed out by Mukharji, J. Speaking for the Court in K. G. Gajapati Narayan Deo v. State of Orissa (1954) 1 SCR I: (AIR 1953 SC 375)."

56. The Prime Minister has no doubt the power to constitute new ministries or divisions but such authority is subject to the Constitution. He has no authority or power in law or the Constitution to transfer the administration and control of the Province subject to a newly created Federal Ministry.

The Prime Minster had already constituted an Implementation Commission being a division of the Ministry of Inter Provincial Coordination which has taken charge of EOBI and passed order on 1-7- 2011. As such nothing was left on the part of Federation to be done under Article 270AA (6)(8)(9) except to allow and facilitate the Implementation Commission to complete its job according to the letter and spirit the 18th Amendment. Consequently, Prime Minister has no authority to reconstitute the Board of Trustees and the order passed in this regard is not sustainable.

57. The only authority of Prime Minister under the Constitution is to constitute the Implementation Commission. The Prime Minister does not have any constitutional mandate to enlarge his powers by amending rules of business or otherwise with relation to subjects which fall in the domain of the Provinces. As a result, all acts and things done after 18-4-2010 when the 18th Amendment became a part of the Constitution with reference to Act No,XVII of 1976 including issuance of Notification No,4-10/2011-min-1 dated 20-7-2011, Notification No,S.R.O.121 (I)/ 2010 dated 3-1-2012 and all acts done pursuant to the said notifications are declared to be violative of the Constitution without lawful authority and of no legal effect.

58. For the afore-noted reasons, both the petitions (W.P.No,1579 of 2012 and W.P.No,5081 of 2012) are allowed.

' A copy of this judgment is sent to Chief Secretary Punjab for his attention.

' There is no order as to costs.

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