HAMID ALI MIRZA, J.- These are two Misc. Appeals under section 64 of the Provincial Employees Social Security Ordinance, 1965. Directed against same order dated viz. 30-8-1995 passed in appeals Nos. 10/1991 and 15/1992. Shaheen Airport Services v. Commissioner, Sindh Employees Social Security' Institution and another passed by Presiding Officer, I-Sindh Labour Court at Karachi, whereby the orders dated 20-6-1991 and 26-11-1992 passed in both appeals by the Commissioner.
Sindh Employees Social Security Institution were maintained hence the present appeals.
2. Brief facts of Appeal No. 46/1995 are that the Director Landhi by letter dated 28-9-1989 for the period January 1988 to December 1988 made total demand of Rs. 5,63,160.88, Rs. 96,73.94 for regular workers and Rs. 4.66,422.94 in respect of porters including 50% increase. Thereafter, in respect of demand of Rs. 96.737.94 with regard to regular workers, rechecking was made by the respondent in view of objections raised by the appellants on 29-10-1989 the said demand was reduced to a sum of Rs. 32.814.91 which amount was paid by, the appellants to the respondents.
However, demand of Rs. 4,66,422:94 with regard to the contribution for porters was not paid, the appellants filed complaint under section 57 on 22-2- 1990 and during the pendency of this complaint before the learned Commissioner on rechecking of the record initial demand of Rs.
466,422.94 was reduced to Rs. 74.639.00 Rs. 37,320.50 total Rs. 1,11,959.50 which appellants were held liable to pay and the said total amount included also 'increase' due to delay in the payment of contribution, consequently. Commissioner dismissed the complaint of appellants' by order dated 20-6-1991 holding the appellants to be liable for the payment a sum of Rs. 1,11.959.00.
3. The appellants filed Appeal No. 10/1991 under section 59 of the Ordinance on 27th July, 1991 before the Sindh Social Security Court No. 1, Karachi, wherein appellants filed affidavit in evidence and the dependant of said affidavit in evidence and the deponent of said affidavit was cross examined on 14-9- 1992 while respondents led no evidence ultimately Sindh Social Security Court dismissed the appeal on 30th August 1995 and against which order the present appeal is filed before this Court.
4. The facts of appeal No.47/1995 are that the Director Landhi, Directorate Karachi, on checking of record for the year January 1989 to December 1990 demanded total payment of Rs. 2,51,494.84 viz. Rs. 1.67,663.23 towards contribution 50% towards increase of Rs. 83,831.61 as per letter dated 14th July 1991. The appellants disputed the said amount and filed complaint under section 57 before the Commissioner SESSI on 20-6-1991. The Commissioner by order dated 26-11-1992 dismissed the complaint holding the appellant liable to pay Rs. 2.501,491.84, thereafter the appellants filed appeal No. 10/1991 before the Social Security Court No. 1 which was consolidated with Appeal No. 15/1992 and both the appeals were dismissed by I-Sindh Labour Court Karachi by common order dated 30-8-1995 against the said common order, these two appeals have been preferred before this Court.
5. It will appear from the above-stated facts that the appellants were asked to pay contribution and increase under section 23 of the Provincial Employees Social Security to the respondents as per their letter No. SSL-2/Cont./2-71-02/508 dated 28-9-1989 for the period from January 1988 to December 1988. Appellants in all circumstances will be liable to pay 'increase' amount due to non- payment of contribution on time as required under section 23 of Provincial Employees Social Security Ordinance for the periods when the stay was not in operation with regard to the demand of the respondents. It will appear from the evidence on record that there was no litigation pending from January 1988 to October 1988 between the parties, therefore, there would" be no question of stay against the demand of the respondents. The litigation between the parties first started in November 1988 before the Commissioner who decided the matter on 49-2-1989 thereafter the appellants approached the Social Security Court in Appeal No. 1/1989 which was filed in the High Court which was dismissed by the High Court on 17-9-1991, thereafter Supreme Court of Pakistan was approached where appeal was dismissed on 21-12-1993.
6. The only point which learned counsel for appellants has raised is that the respondents are not entitled to make demand of increase over the unpaid contribution under section 23 of Provincial Employees Social Security Ordinance 1965 on the ground that there was a dispute regarding porters being adjudicated upon before the Courts as such there could not be said to be failure to pay the contribution within the meaning of section 23 of the said Ordinance as such no increase could be levied during the period of operation of stay orders of the Commissioners Institution, Social Security Court and Sindh High Court for the period from 1989 onwards. Reliance is placed upon R.C.D. Ball Bearing Limited v. Sindh Employees Social Security Institution Karachi (PLD 1991 SC 308).
7. learned counsel for respondents has argued that liability to pay contribution by the appellants was decided on 21-12-1993 as per decision made in Shaheen Airport Services v. Sindh Employees Social Security Institution (1994 SCM R 881). He has referred to rule 6 of Provincial Employees Social Security (Contributions). Rules 1966 whereunder in case of failure of employer to pay the total amount of contribution within the prescribed period the amount payable shall be increased by one half percent per day for each day after the expiry of prescribed date subject to the maximum increase of fifty percentum as per proviso ' I' to sub section (1) of section 23 of the said Ordinance.
He has placed reliance upon Sindh Employees Social Security Institution v. Amin Fabrics Limited (1983 PLG 182) wherein liability for payment of increase has been held to be a statutory liability and the same is to be paid by the employer if he failed to pay on due date contribution payable by him as provided under subsection (1) of section 23 of the said Ordinance. Reliance is also placed upon Rasheed Textile Mills Ltd. Karachi v Commissioner Sindh Employees Social Security and another (1980 PLC 800) wherein increase in the. Payment on account of delayed payment of contribution is held to be a statutory liability and the employer would not stand absolved of the same under the law under bona-fide misunderstanding. Reliance is also placed upon Pakistan Engineering Company Limited v. Punjab Employees Social Security Institution Lahore (1981 PLC 79 SC) wherein it has been observed that failure to comply with the obligations imposed by sections 20 and 21 by the employer would invite the liability to the imposition of penalty under section 23 of the Social Security Ordinance, 1965.
8. learned counsel for the respondents has further argued that the appellants have not accounted for the period during which the stay was operating in the matter so as to be entitled to the benefit of the decision reported in PLD 1991 SC 308. learned counsel has further argued that after the decision of the First $ Sindh Labour Court on 30-8-1995 till this date the appellant has not paid the contribution therefore the appellant would- be liable to the payment of increase as required under section 23 of the Social Security Ordinance as there has been no stay in operation from the date of announcement of judgment of the First Sindh Labour Court till this date. He has further elaborated that since the day the demand was made till the appeal was filed before the Commissioner Social Security Institution and thereafter also there was no stay after 26th November 1992 till the appeal was preferred before the First Sindh Labour Court at Karachi. In the end, learned counsel for the respondents submitted that in any case the appellants could not be made liable to such increase exceeding fifty percentum of the amount due.
9. learned counsel for appellants has made a statement in the open Court that he is prepared to pay the contribution amount of Rs. 74.639.00 for each year for the total three years amounting to Rs. 2,23,917/- but the demand of increase was not justified. The appellants have not given total period of stay during which it was in operation since the day of demand by the respondents but in any case the appellants have not paid the contribution as demanded from the date of the decision dated 30th August. 1995 of First Sindh Labour Court at Karachi till this day and there being no stay operating against the respondents in favour -of appellants. The appellants in the circumstances, cannot escape the liability in respect of increase in making delayed payment of contribution as required under section 23 of the Social Security Ordinance.
10. No other plea is raised. In view of the aforesaid circumstances, reasonings and the case law, the appeals have no merits which are hereby dismissed. revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.