' TASSADUQ HUSSAIN JILLANI, C.J.---Through this appeal by leave of the court, appellants have challenged the judgment of the Islamabad High Court vide which appellants' appeal against the judgment of the learned Single Judge in chamber dated 18-3-2013 was dismissed and the order of the learned Single Judge was upheld.
2. Facts giving rise to the instant appeal briefly stated are that respondent Muhammad Azhar Chughtai was appointed as Manager (Stores and Fixed Assets Accounts) ME-7-S vide the order dated 3-4-2006 by the Managing Director of the Oil and Gas Development Company Ltd. His services were terminated vide the order dated 2-1-2013 which order reads as follows:-- "The contract employment of Mr. Muhammad Azhar Chughtai (E# 103618), Manager (EG-VII) is terminated with immediate effect. He is entitled to the following benefits on furnishing a clearance certificate:
(i) Payment of three months salary in lieu of notice period in accordance with terms and conditions of his contract employment.
(ii) Encashment of earned leave, up to a maximum of 48 days, subject to verification by Audit.
(iii) Gratuity of one month gross salary for each completed year of service. The officer was appointed on 5-4-2006.
(2) This issues with the approval of MD/CEO."
3. The afore-referred order was challenged before the Islamabad High Court and the learned High Court while accepting the writ petition (bearing No, 288 of 2013) set aside the order inter alia on the ground that in terms of clause 12(c) of the terms of appointment letter only the Board of OGDCL could terminate the services of respondent and that the order of termination of service did not indicate that the order was issued pursuant to a decision of the Board of Directors of the Company.
This order has been maintained in the Intra Court Appeal. Leave was granted by this Court vide the order dated 7-8-2013.
4. Learned counsel for the appellants submitted that in terms of clause 12(c) of the appointment order either the Board or its assignee could terminate the appointment by giving three months notice or in lieu thereof pay of the said period; that the assignment was duly made in favour of the Managing Director who could pass the order and the same was passed by him on recommendation of the Managing Committee of OGDCL.
5. Learned counsel for the respondent, however, defended the impugned judgment by submitting that the respondent was not a contract employee within the meaning of Rule 2(k) of the Oil and Gas Development Company Limited Employees Service Rules, 2002 and the assignment to which reference has been made was only applicable to the contract employees and the respondent not being a contract employee, his services could not be terminated by the assignee to which reference is made by appellants' learned counsel.
6. We have considered the submissions made and have gone through the relevant rules.
7. To examine the nature of appointment and the question as to who was authorized under the rules to proceed against the respondent or terminate his services, a reference to the terms and conditions of the appointment order dated 3-4-2006 would be in order, which reads as follows:-- "APPOINTMENT AS MANAGER (STORES AND FIXED ASSETS ACCOUNTS) ME-7-S ' Dear Sir, ' We are pleased to offer you the aforementioned position of Manager (Stores and Fixed Assets Accounts) ME-7-S on the following terms and conditions:- ' Your salary will be set out as below and any subsequent change will be at the sole discretion of the company:
(1) You will receive a Consolidated Basic Salary of Rs,109,700.00 per month.
(2) 45% of Basic Salary as the House rent (Rs, 49,400.00 per month).
(3) 10% of Basic Salary as the Utility Allowance (Rs,10,200.00 per month).
(4) Leave as per company's policy.
(5) Medical Insurance coverage upto Rs, 550,000.00 per year in case of major ailment and hospitalization for, self; wife and two children only as per company's prevailing rules in Pakistan.
(6) Gratuity as per company's prevailing rules.
(7) You will not be entitled to any other allowance, privileges, outdoor medical facility or alike, except those as specified above.
(8) Income Tax and other Government levies shall be deducted as per country and company rules and procedures.
(9) If you are posted to the fields/plants you will be entitled to allowances as per the company's prevailing policy.
(10)You shall as long as you are in the service of OGDCL shall obey all lawful orders given by the company or your senior or by other duly authorized persons and shall devote your whole time and attention to the business and interests of .OGDCL and shall not engage in any other business and interests of OGDCL and shall not engage in any other business, job or occupation whatsoever or be interested directly or indirectly in any business or undertakings having interests opposed to or in competition with the interests of the company.
(11)You will be liable to be posted in any part of Pakistan or abroad in connection with company duties and the company shall also have the right to entrust you not only with work in its own service but also may send you on secondment to any other company.
(12)Notwithstanding anything to the contrary the company may at any time:-.
(a) terminate your appointment should you be absent from work for any reason for a period of two weeks, giving to you a notice in writing of its intention to do so;
(b) summarily dismiss you should be guilty of breach of letter of appointment, insobriety, addiction to drugs, disobedience, neglect of duty or other conduct which at the sole discretion of Management is determined to be detrimental to the business or interests of the company.
(c) OGDCL or its assignee at its absolute discretion has full right to terminate your appointment either by giving you three months notice or without previous notice upon paying to you in addition to any sum which may have accrued to you at the date of such termination of appointment a sum by way of compensation equal to three months salary than current under this appointment.
(Emphasis is supplied)
(13) Should this appointment be terminated for any of the causes contained in Clause 12, section
(a) or (b) then you shall not be entitled to any compensation or to any pay beyond that which may have accrued to you at the date of the termination hereof or of your dismissal.
14 Should you for any reason wish to terminate your service with the company you will be at liberty to resign from our employment on the expiry of three months prior notice in writing of your intention to do so; which notice must be sent to the company's Managing Director. It will be the company's discretion to decide in the event of your giving such notice whether you would work the full period of notice or whether your service shall terminate at some earlier date to be determined by the company.
(15) You shall be on 90 calendar days probation period from the day you file the joining report. The company can terminate your service at any time during this period without notice pay or any other benefit. The Probation period may be extended at the sole discretion of the Managing Director.
(a) OGDCL means itself or its assignee or its subsidiary or partner or alike.
(16) This offer of employment is subject to your passing a medical examination to be arranged by OGDCL and submission of relevant documents.
(17) In case of any dispute regarding terms and conditions of the employment, the decision of MD OGDCL will be final."
8. The tenor of the terms and conditions of the above referred order of appointment of the respondent would indicate inter alia first, that the appointment was not for a specified period, second his services could be terminated by OGDCL or its assignee in its discretion (clause 12(c)); and third, the assignment to which reference has been made by respondent's learned counsel is dated 13-1-2006 which is as follows:-- "Subject: DELEGATION OF POWERS ' The Board of Directors in its 70th meeting held on November 8-9, 2005 has authorized the Managing Director to approve employment and promote officers upto the level of Managers (EG- VII) on the recommendations of Managentent Committee constituted for this purpose and terminate their contracts of employment.
(2) Forwarded for further necessary action at your end please."
9. Admittedly, the respondent was a group EG-VII employee but his appointment was not a contract appointment. The afore-referred delegation of powers, therefore, would be of no avail to the appellant department. In terms of clause 12(c) of the appointment order, it was only the OGDCL or its assignee who could terminate the services of the respondent employee and since the order was neither passed by the Board nor by its assignee the nine was not sustainable and has rightly been interfered with by the learned High Court. The concurrent judgments are unexceptionable and do not warrant interference. However, before parting with the judgment, we may observe that it would be open for the appellant organization to pass a fresh order in terms, of clause 12(c) referred to above. Disposed, of accordingly.