SHAMS MEHMOOD MIRZA, J.--- This intra court appeal filed under section 3 of the Law Reforms Ordinance, 1972 seeks to challenge order dated 28.05.2014 passed by the learned Single Judge in Chambers whereby the writ petition filed by the appellant was dismissed.
2. The appellant was an employee of National Bank of Pakistan and stood retired from service on 10.07.1997. On account of Notification dated 16.05.2011 issued by the Ministry of Finance, Government of Pakistan pursuant to judgment passed by the Federal Service Tribunal in Appeal No,486 (L)/2006 which was upheld by the Hon'ble Supreme Court in C.P. No,173 of 2011 whereby the cost of living allowance at the rate of 7% was made admissible as emolument for the purpose of pensionary benefits of the retired employees, the appellant filed the writ petition before this Court seeking the said benefit which was dismissed by the learned Single Judge in Chambers, hence this intra court appeal.
3. The learned counsel for the appellant submitted that the effect of Notification dated 16.05.2011 was retrospective and read with bank's Notification dated 26.12.1977, the appellant was also entitled to the benefit of cost of living allowance. Learned counsel for the respondent bank while controverting the stance of the appellant submitted that the bank vide Notification dated 19.07.1995 specifically excluded the cost of living allowance from the purview of pensionary benefits.
4. The learned counsel for the appellant placed reliance on Instruction Circular No,228(C) dated 26.12.1977 which was issued by the Federal Government for establishment of pensions and retirement benefits for the officers/executives of the Banks along the lines of those introduced for civil servants as also on 16.05.2011 to contend that the appellant was entitled to the cost of living allowance. This position must be tested on the basis of subsequent statutory changes brought in law dealing with the nationalized banks. It is noted that the Banks (Nationalization) Act, 1974 had undergone considerable changes through amendments made in the years 1997 and 2007. Section 11 as amended by Ordinance No,VIII of 1997 on 21.01.1997 and insofar as relevant reads as under:
11. General provisions pertaining to management of banks.---(1) Subject to subsection (2) a bank shall have a Board consisting of--
(a) a President, who shall be its Chief Executive; and
(b) not less than five and not more than seven other members including one or more directors whose election by the private shareholders, removal and other matters shall be governed by the Companies Ordinance, 1984 (XLVII of 1984).
(2)
(3)
(4) The general direction and superintendence of the affairs and business of a bank, and overall policy making in respect of its operations, shall vest in its Board.
(5) The Board shall determine--
(i) the credit policies of the bank;
(ii) evaluation criteria for the performance of the employees of the bank other than the President;
(iii) personnel policies of the bank including appointment and removal of officers and employees;
(iv) guidelines for entering into any compromise with borrowers and other customers of the bank; and
(v) any other policy matter.
(6) The Chief Executive and other officers of the bank shall act in accordance with the policies, criteria and guidelines determined by the Board.
(7)
(8)
(9) The President, subject to the control and directions of the Board, shall exercise powers of management of the affairs of the bank.
(10) All selections promotions and transfers of employees of banks except the President and decisions as to their remuneration and benefits shall be made by the President in accordance with evaluation criteria and personnel policies determined by the Board.
5. In terms of section 11 of the said Act, the general direction and the superintendence of the affairs and business of the Nationalized Banks including National Bank of Pakistan came to vest in the Board of Directors, which was charged with the function of determining, inter alia, the personnel policy of the Bank, policy matters and all matters relating the remuneration and benefits of the employees. Through these changes, the management of the Nationalized Banks became free from the control of and general superintendence by the Federal Government.
The true import of the changes brought about by the Banks (Nationalization) Act, 1974 in section 11 was that the Federal Government was no longer empowered to give directions to the nationalized banks with regard to the areas in which the Board of National Bank of Pakistan could deal or pass decisions. All matters relating to the selection, promotion and transfer of the employees and decisions with regard to their remuneration and benefits, by virtue of section 11, came to vest in the Board which was to device the evaluation criteria and personnel policies to be implemented by the President of the Bank. The wide powers conferred through this provision of course included the matters with regard to the pensionary benefits of the employees of National Bank of Pakistan regarding which the Board was made empowered to take decisions. Any decision taken by the Board and Notification issued by the Bank in pursuance of and with regard to matters covered by section 11 of the Banks (Nationalization) Act, 1974 had the statutory force.
6. National Bank of Pakistan vide Circular dated 19.07.1995 clearly made the cost of living allowance to be not part of the emoluments for the purposes of calculation of pension and recovery of house rent. The decision in this regard was taken on the basis of powers conferred on the Board of the Bank by section 11 of the Banks (Nationalization) Act, 1974. Notification dated 19.07.1995 overturned and superseded Circular dated 26.12.1977 which made changes and revision in the rates and scales of pension and gratuity made by Federal Government to be applicable to the Officers/Executives of the National Bank of Pakistan. Accordingly office memorandum dated 16.05.2011 issued by Finance Division of the Federal Government for treating the cost of living allowance as an emolument for the purpose of pensionary benefits of the employees in BPS 1-22 could not be made applicable to the employees of National Bank of Pakistan.
7. The learned Single Judge in Chambers also rightly came to the conclusion that the judgment of the Federal Service Tribunal which was upheld by the Hon'ble Supreme Court had no applicability to the case of the petitioner as National Bank of Pakistan was not a party to the said proceedings and was not bound by it.
8. In the circumstances, no ground for interference is made out by this Court. This appeal being devoid of merit is dismissed.