1. WAJIHUDDIN AHMED, J.---These proceedings are based on a letter of the petitioner, dated 7-9- 1992, addressed to the learned Chief Justice, whereon orders, dated - 14-9-1992, were passed to register the same as a Constitutional Petition with notices to the Advocate-General, Sindh, Deputy Attorney-General for Pakistan and the Deputy Director-General, E.O.B.I. Karachi.
2. On facts, the petitioner was an employee of Messrs ACE (Pvt.) Limited and, following attainment of the age of sixty years, effectively retired from service on 30-6-1991. Incidental upon, such service the petitioner was registered with the Employees' Old-Age Benefits Institution (EOBI) and was issued a registration card bearing No.030-01-005398. It is the case of the petitioner that EOBI, as from 1-7-1986, had inducted him to the membership of its pension scheme floated under the Employees Old-Age Benefits Act, 1976 (hereinafter referred to as the Act). Since the petitioner was born on 22-6-1931 he was to attain the age of sixty years on 21-6-1991 and this fact was all along known to EOBI but when the petitioner in July, 1991 sought payment of old-- age pension pursuant to section 22 of the Act such was refused to him ostensibly on the ground that monthly contributions in respect of him were not payable for a minimum period of five years.
3. In course of time, Mr. Sabihuddin Ahmad undertook to prosecute the petitioner's grievance, converted into this petition and Mr. MA.M. Namazi appeared for the EOBI. We, on our part, heard both the learned counsel it Court today and, through a short order, allowed the petition for reasons to be recorded separately. Appearing here are our reasons for the short order: "It will be convenient first to deal with the objections of Mr. M.A.M. Namazi as regards the petitioner's entitlement to the old-age pension. Learned counsel has urged that the entitlement does not arise upon a proper examination of the definition of the word "year" occurring in section 2(q) of the Act as read with sections 9 and 22 thereof and Rule 3 of the Employees' Old --Age. Benefits (Contributions) Rules, 1976. For facility of reference we reproduce below relevant portions of the such provisions:-- Employees Old-Age Benefits Act 1976 "(2)Definitions-- In this Act, unless the context otherwise requires, -- (q)"year" with respect to insurable employment, means a total of three hundred and sixty-five days for which contributions are payable, or, in the case of insured persons, who are not paid for weekly holidays, a minimum of three hundred and twelve days.
4. (9)Rates and assessm ent---(1) On and from the first day of July. 1976 contributions shall be payable every month by the employer to the institution in respect of every person in his insurable employment, at the rate of five per cent. Of his wages in the prescribed manner: Provided that no contribution shall be payable on so much of an insured person's wages as is in excess of (one thousand five hundred) rupees: Provided further that no contribution shall be payable in respect of an insured person who is in receipt of pension under this Act or has attained the age of sixty years or fifty-five years in the case of a woman.
(22) Old-Age pension.---(1) An insured person shall be entitled to monthly old-age pension at the rate specified in the schedule- Provided that--- (a)he is over sixty years of age, or fifty-five years in the case of woman, and (b)contributions in respect of him were payable for not less than fifteen years: Provided further that the age specified in clause (a) will be reduced by five years in the case of an insured person employed in the occupation of mining for at least ten years immediately preceding retirement.
5. (2)If an insured person was on the 1st day of Julys 1976, or is on any day thereafter on which this Act becomes applicable to an industry or establishment-- (i)over forty years of age, or thirty-five years in the case of a woman, clause (b) of subsection (b) shall have effect as if for the word "fifteen" therein the word "seven" were substituted; or (ii)over forty-five years of age, or forty years in the case of a woman clause (b) of subsection (1) shall have effect as if for the word "fifteen" therein the word "five" were substituted.
6. (2-A) Notwithstanding anything contained in subsection (1), an insured person--- (a)who was insured under the provisions of this Act on or before the 30th June, 1986, and will attain the age of fifty-five years (fifty years in the case of a woman) on or before the 30th June, 1991, and (b)in respect of whom contributions were payable to the Institution for the period required under the provisions of this Act, shall be entitled to old-age pension at the age of fifty-five years (fifty years in the case of a woman).
7. (2-B) An insured person already in receipt of an old-age or invalidity pension, or entitled to an old- age pension under the provisions of subsection (2-A) shall be entitled to a minimum pension at the rate specified in the Schedule.
8. (2-C) An insured person who retires from insurable employment before attaining the age of sixty years (fifty-five years in the case of a woman) but after attaining the age of fifty-five years (fifty years in the case of a woman) shall be entitled to a reduced old-age pension on fulfilling the following conditions, namely:-- (a)the Institution is satisfied through documentary evidence that the employer has a definite establishment retirement age of less than sixty years (fifty-five years in the case of a woman); (b)the employer certifies that the insured person has been retired by him on attaining the age of superannuation; and (c)the contributions in respect of him were payable for the period required under the provisions of this Act.
9. (2-D) The old-age pension shall be reduced by one-half per cent of the old-age pension specified in the Schedule for each completed month by which the age falls short of sixty years (fifty-five years in the case of a woman) and the minimum old-age pension shall also be reduced in the aforesaid manner in the case of retirement from insurable employment before attaining the age of sixty years (fifty-five years in the case of a woman).
10. (2-E) The reduction in old-age pension specified in subsection (2-D) shall be for life and shall not be restored on the insured person's attaining the normal pension age.
11. (3)Subject to regulations, the old-age pension shall commence as from the month following that in which the insured person satisfied the condition for entitlement thereto, provided that no allowance shall be payable retroactively for more than six months preceding the month in which an application for old-age pension is submitted.
12. (4)Insurable employment of a person for the purposes of this Act shall commence on the date from which the first contribution in respect of him becomes payable.
13. (5)The old-age pension payable to an insured person shall be terminated at the end of the month in which the death of such person occurs.
14. EMPLOYEES' OLD-AGE - BENEFITS (CONTRIBUTIONS) RULES. 1976.
15. Rule 3. Contributions.--- (1) Subject to subsection (1) of section 9 of the Act, contributions shall be payable on and from the date the. Act becomes applicable to the employer.
16. (2)Contributions falls due at the end of the month to which they relate and shall be paid not later than the 15th of the next following month:'
17. Mr. MA.M. Namazi's argument is that the petitioner could have been eligible commensurate with the requirements of the quoted provisions if, before attaining the age of sixty years, "contributions in relation to him were payable for not less than five years". Now it is an admitted position that the total employment of the petitioner for the purposes of the Act was demonstrably short by nine days in the context of five years claimed to be applicable to him in terms of subsection (1)(b) of section 22 as conditioned by subsection (2)(ii) of the same section in the Act. However, upon the language of the relevant provisions, we are of the view that it is neither the total period of service rendered by an employee falling within the purview of the Act nor the period of service during which he was registered with the Employees' Old-- Age Benefits Institution but the payability in relation to him of contributions in contemplation of sections 9 and 22 and the 'total period for which such contributions were payable which is crucial to the entitlement. If the period in such behalf, relevantly with this case, totals five years, as envisaged in section 22(2)(ii), the entitlement arises. We may explain this: It will be seen that section 9 of the Act stipulates that "on and from the first day of July, 1976, contributions shall be payable every month by the employer to the Institution in respect of every person in his insurable employment ... ... ...". As to insurable employment of a person, such, under section 22(4), commences on the date from which the first contribution in respect of him becomes payable. Accordingly, payability is the basic concept on which the entitlement under the Act proceeds. For the petitioner the cut off date was July 1, 1986. The second proviso to subsection (1) of section 9 in turn postulates "that no contribution shall be payable in respect of an insured person ....
18. Who has attained the age of sixty years . .". Thus, payability of contributions in respect of an employee commences with the commencement of insurable employment and, inter alia, ceases with his attainment of the age of sixty years. Correlatively, entitlement to receive monthly old-age pension, at the rate prescribed in the schedule to the Act, for an insured person would arise, if a male, on attaining the age of sixty years "provided that .... Contributions in respect of him were payable for not less than five years": (first proviso to subsection (1) of section 22 read with subsection (2) of the same section).
19. What, therefore, requires consideration is whether, before attaining the prescribed age of sixty years, contributions for the petitioner "were payable for not less than five years". As seen, preceding the attainment of the age of sixty years on 21-6-1991, duly dilated upon above, the petitioner was in insurable employment w.e.f. 1-7-1986. Applicable to the petitioner, the first contribution became payable on July 1, 1986 and the last on June 1, 1991 upto which date, uncontrovertedly, the petitioner had not attained the age of sixty years. Accordingly, he was covered by qualifying clause (b) in the first proviso to subsection (1) of section 22 of the Act since "contributions in respect of him were payable for not less than five years". This is all that was relevant. In so far as actual payment of the contribution is concerned it is no body's case that .Non-payment thereof will make any difference.
20. In terms of Rule 3(2), reproduced herein above, contributions payable on the first of each month (section 9(1)) fall due at the end of the month and require to be paid by the 15th of the following month. If not paid such, as said, is of no consequence in the context of the entitlement for the employee to secure for himself and to receive the old-age pension, if otherwise entitled to do so.
21. Indeed the contributions are payable by the employer, a matter between the Institution and the employer alone and none of the concerns of an insured person.
22. Subsections (4) and (5) of section 22 of the Act make the point in issue clearer. The first of these subsections explicitly says that "insurable employment of a person for the purposes of this Act shall commence on the date from which the first contribution in respect of him becomes payable". The second of the referred subsections contemplates the situation of an insured person passing away after maturity and impact thereof on the continued entitlement to receive pension. In that event the old-age pension payable to the insured deceased employee would stand terminated not on the date of death itself but "at the end of the month in which the death of such person occurs". This clearly under-scores the fact that induction into insurable employment as well as cessation of the right to claim old-age pension has a nexus with the first day on which either right arises. Rule 3(1) also strengthens the view, when it envisages that "contributions shall be payable on and from the date the Act becomes applicable to the employer".
23. As regards the term "year", which according to the impact of the definition clause in section 2(q) of the Act would be a period of 365 days, all that we need to say is that the definition clause in the statute under reference, much as similar clauses in other statutory dispensations, would have to be construed subject to context and the word "year" in relation to sections 9 and 22 aforequoted, should have a peculiar meaning, implying in relation to the minimum insurable period of five years a period of sixty months beginning with the first day of the commencing month and ending with the first day of the concluding one. Needless to add that here we are more concerned with the concept of a month than that of an year and because the word "year" is defined while the word "month" is not the law is to be interpreted in its overall context.
24. Even in relation to the term "year" Mr. Sabihuddin Ahmad has drawn our attention to the schedule appended with the Act, in the backdrop of sections 22 and 23, and in particular paragraph 1 thereof, which enjoins that in assessing pensions for a shortfall in terms of time "a period of six months or more of insurable employment shall be treated as one full year". This circumstance in itself is a pointer that the legislative definition of the word "year" in no way involves any element of inflexibility and contextually the rule of beneficial construction can be applied.
25. While interpreting the term "payable", as reflective upon the minimum period of insurable employment under the Act, we should not be understood to have said that the conditions in section 22 are relaxable. Such do not appear to be relaxable. All that we are saying is that the word "year", as dilated upon, is to be interpreted in context and neither in isolation nor always in absolute terms.
26. In conclusion and summing up, we are of the view that the relevant period of insurable employment under the Act is to be reckoned in the context of payability of applicable contributions and if, at the time the liability to pay the last contribution arose, the employee had relevantly not attained the age of sixty years etc. Then, even though subsequently, before the expiry of the such month, he had attained that age would make no difference. Let us illustrate what is meant by this: what is meant is that if at the time an insured person, enters the last month of his insurable employment and contribution in relation to that month becomes payable, he has not attained the age of sixty years etc.. Then even if on the day or days following of the month he attains such age, the last month would be counted as full month for the relevant insurable employment and the fact that for the remainder (a maximum of 29 or 30 days) of such month he would stand retired shall have no bearing. Labour Laws, as it has been held over and over again, are to be interpreted beneficially to the employees. Such an interpretation we render here.
27. Even so, a case for appropriate amendment in the relevant law at the legislative level in other cases of hardship, not covered by the foregoing, may also have been made out but that of course lies in another domain. Let, therefore, a copy of this order be forwarded to the Secretary, Ministry of Law and Justice, at Islamabad in the context last mentioned.
28. Petition allowed, as above.