IN THE SUPREME COURT OF PAKISTAN 
(APPELLATE JURISDICTION) 
 
 
PRESENT: 
MR. JUSTICE EJAZ AFZAL KHAN. 
MR. JUSTICE MAQBOOL BAQAR.  
MR. JUSTICE IJAZ UL AHSAN.  
 
 
CIVIL APPEAL NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017  
(On appeal against the judgment dt. 03.06.2014 passed by the Peshawar 
High Court, Peshawar in W. P. No. 3324 of 2011 and the judgment dt. 
16.01.2017 passed by the Lahore High Court, Lahore in Intra Court Appeals 
No. 120 to 146 and 148 to 156 of 2016 and 460 to 464 and 991 of 2016).  
 
 
Bahadur Khan and others. 
(in CA.353/15).  
 
 
 
 
 
       
National Bank of Pakistan thr. its President/  
Board of Directors, Lahore.  
 
 
 
 
(in CAs.632-673/15).  
…Appellant(s) 
Versus 
 
Federation of Pakistan thr. Secy., M/o Finance, 
Islamabad and others.  
 
Iftikhar Rasool Anjum and others.  
Badar-uz-Zaman and another. 
Ch. Muhammad Mushtaq Cheema and others.  
Muhammad Arshad Sheikh and another.  
Abdul Waheed and others.  
Muhammad Sharif and others.  
Saif ullah Khan and others.  
Javed Akhtar Khan and others.  
Riaz Ahmad Malik and another.  
Muhammad Nawaz Farooqi and others.  
Umar Hayat Khawaja and others.  
Mrs. Bushra Khanum and others.  
Shaukat Ali Bhatti and others.  
Sardar Muhammad Ahmad and others.  
Muhammad Sharif Ch. And others.  
Muhammad Shamim Akhtar and others.  
Muhammad Rashid Butt and another.  
Syed Ijaz Hussain and another.  
Muhammad Iqbal Qadar and others.  
Muhammad Rafique Goraya and others.  
Asad Ullah Khan Leghari and others.  
Muhammad Afsar Khan and others.  
Furrukh Sair Ahmad and others.  
Ghulam Rasool Shai and others.  
Ihsan Ul Haq and another.  
Syed Iqbal Hussain Shah and others.  
Asif Saeed and others.  
Muhammad Ilyas Ch. And others.  
Jan Muhammad and another.  
Shafqat Mehmood and another.  
Ateeq Qamar and others.  
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
2
Kokab Iqbal and others.  
Mushtaq Ahmed and others.  
Allah Ditta and others.  
Afzal Anwar and others.  
Nisar Ahmed and another.  
Muhammad Nawaz Cheema and others.  
Muhammad Saeed and others.  
Abdul Samee Khan and others.  
Muhammad Riaz Raza and another.  
Munir Ahmed and others.  
Agha Bilal Ahmed Khan and others.  
 
 
 
 
 
 
    
 
 
…Respondent(s) 
 
 
 
 
 
 
 
 
 
For appellant No. 1:  
Mr. Abdul Rahim Bhatti, ASC.  
 
Mr. Abdul Rehman Khan, ASC. 
 
Syed Rafaqat Hussain Shah, AOR.  
 
(in CA.353/15). 
 
For appellant No. 2: 
Mr. Salman Akram Raja, ASC.  
 
(in CA.353/15) 
 
 
Mr. Khalid Anwar, Sr. ASC 
 
Kh. Muhammad Farooq, Sr. ASC 
 
 
 
 
Syed Rafaqat Hussain Shah, AOR.  
 
 
 
 
(in CAs.632-673/17).  
 
 
 
 
 
For the respondent(s):  
Mr. Sohail Mehmood, DAG. 
 
Munir Ahmed, J.S. M/o Finance. 
 
Abid Channa, S.O. M/o Finance. 
 
For respdt. No. 1 : 
Mr. Salman Akram Raja, ASC.  
 
(in CA.632/17) 
 
 
Mr. Hashmat Ali Habib, ASC. 
 
Mr. M. S. Khattak, AOR.  
 
(in CAs. 633, 634, 636, 638, 639, 643, 646, 649, 
650, 652, 653, 654, 656, 658, 659, 660, 662, 666, 
and 670 of 2017).  
 
 
Mr. Faiz Rasool Jalbani, ASC.  
 
(in CAs. 644, 645, 648, 657, 661, 664, 667, 669 and 
671 of 2017).  
 
In person : 
Umer Hayat Khawaja. 
 
Akbar Ali.  
 
Syed Jehangir.  
 
In CMAs. 1493 & 2079/15: Mr. Abdul Rahim Bhatti, ASC.  
 
Mr. Abdul Rehman Khan, ASC. 
 
Syed Rafaqat Hussain Shah, AOR.  
 
 
Date of Hearing: 
 
14.06.2017, 15.06.2017 & 16.06.2017.  
(Judgment Reserved). 
 
 
 
 
……………………
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
3
 
J U D G M E N T    
 
 
 
EJAZ AFZAL KHAN, J.- These appeals with the leave of the 
Court have arisen out of the judgment dated 16.01.2017 of a Division Bench 
of the Lahore High Court whereby it dismissed the Intra Court Appeals filed 
by the appellants and thus upheld the judgment dated 15.01.2016 of the 
said High Court whereas C. A. No. 353 of 2015 has arisen out of the 
judgment dated 03.06.2014 of a Division Bench of the Peshawar High Court 
whereby it dismissed the petition filed by the appellants.  
2. 
 
Learned Sr. ASC appearing on behalf of the National Bank 
contended that neither the letter dated 30.11.1977 issued by the Finance 
Division, Government of Pakistan nor the Circular No. 228(C) dated 
26.12.1977 issued by the National Bank of Pakistan implementing the terms 
and conditions set out in the letter dated 30.11.1977 could be said to have 
been issued in exercise of the rule making powers under Section 20 of the 
Banks Nationalization Act, therefore, they have no statutory sanction 
behind them. He next contended that where the notification and the 
circular stating terms and conditions of service appear to be purely 
administrative or executive instructions, they cannot be treated as statutory 
instruments, the more so when, they have not been published in the official 
gazette. Whatever attire, the learned ASC maintained, the respondent 
may put on the notification it could not have a statutory status if seen in the 
light of the judgment rendered in the case of Mustafa Impex. Vs. 
Government of Pakistan (PLD 2016 SC 808). He next contended that with 
the dissolution of Pakistan Banking Council through Banks (Nationalization) 
(Amendment) Act XVIII of 1997 the Board of the Bank became more 
autonomous and independent and as such they shaped policies and 
determined the terms and conditions of service of their officers and 
executives keeping in view the emerging competitive environment. The 
Board, the learned Sr. ASC maintained, accordingly issued Circular No. 
3799 dated 16.06.1999, revised the pay structure and the pension factor of 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
4
the officers and executives of the Banks; that the circular was accepted 
and acted upon by the officers and the executives without any qualms for 
more than a decade; that once it was accepted and acted upon, it could 
not be questioned by them under any canons of law and propriety and 
that neither the Single Judge hearing the writ petitions nor the Division 
Bench of the Lahore High Court hearing the Intra Court Appeals 
appreciated the content and the context of the Circular while handing 
down the impugned judgments. Writ petitions of the respondents, the 
learned Sr. ASC argued are also hit by the principle of approbation and 
reprobation inasmuch as they damn the decrease in the pension factor 
without refunding what they received consequent upon the revision of the 
pay scale. Such petitions, the learned Sr. ASC argued, are hit by the 
principle of laches when they were instituted ten years after the issuance of 
the circular dated 16.6.1999. The learned Sr. ASC lastly argued that where 
the notification dated 30.11.1977 nor the Circular dated 26.12.1977 can be 
held to be statutory by any attribute, the writ petitions filed by the 
respondents merited outright dismissal. The learned Sr. ASC to support his 
contentions placed reliance on the case of Muhammad Zaman and others. 
Vs. Government of Pakistan through Secretary, Finance Division (Regulation 
Wing), Islamabad and others (2017 SCMR 571).  
3. 
 
Learned ASC appearing on behalf of the appellant in CA. No. 
353 of 2015 and respondents in CA. Nos. 632 to 673 of 2017 contended that 
the letter dated 30.11.1977 issued by the Finance Division, Government of 
Pakistan and the Circular No. 228(C), dated 26.12.1977 issued by the 
National Bank of Pakistan having all the traits and trappings of statutory 
rules are binding on the National Bank of Pakistan, therefore, any departure 
from either of them would be amenable to the constitutional jurisdiction of 
the High Court. The learned ASC to support his contention placed reliance 
on the case of Khawaja Abdul Hameed Nasir and others. Vs. National Bank 
of Pakistan and others (2003 SCMR 1030). Learned ASC next contended 
that appointment of the Pay Commission for Banks and Financial 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
5
Institutions, issuance of notification dated 30.11.1977 of the Finance Division, 
Government of Pakistan, issuance of orders by the Banking Council to the 
Bank and finally issuance of Circular No. 228(C), dated 26.12.1977 in 
compliance with the order of the Banking Council have a statutory 
backing, therefore, it is beyond the power and competence of the Board 
of Directors of the National Bank of Pakistan to change any of the terms 
and conditions governing the pay and pension of its officers and 
executives to their disadvantage. The learned ASC to support his 
contention placed reliance on the case of Muhammad Tariq Badar and 
another. Vs. National Bank of Pakistan and others (2013 SCMR 314). The 
learned ASC further contended that the notification issued by the Finance 
Division Government of Pakistan and Circular No. 228(C) issued by the Bank 
could be treated at par with the statutory rules when they have been 
acted upon for decades and decades together. The learned ASC to 
support his contention placed reliance on the cases of Pakistan. Vs. Sheikh 
Abdul Hamid (PLD 1961 SC 105), Dr. Habibur Rahman. Vs. The West Pakistan 
Public Service Commission, Lahore and 4 others (PLD 1973 SC 144), Khan 
Faizullah Khan. Vs. Government of Pakistan through the Establishment 
Secretary, Cabinet Secretariat and another. (PLD 1974 SC 291). Reduction in 
pension factor, the learned ASC added, from 70% to 33% cannot be 
justified under any principle of law and jurisprudence when the 
recommendations of the Pay Commission, orders of the Banking Council, 
notification issued by the Finance Division, Government of Pakistan and the 
Circular issued by the Bank no where limited their efficacy in terms of time. 
Failure to have the notification published in the official gazette, the learned 
ASC maintained, cannot shear it of its efficacy or make it non-statutory. To 
support his contention learned ASC placed reliance on the cases of Saghir 
Ahmed through legal heirs. Vs. Province of Punjab through Secretary 
Housing and Physical Planning, Lahore and others (PLD 2004 SC 261), 
National Bank of Pakistan. Vs. Manzoorul Hassan. (1989 SCMR 832) and 
Pakistan. Vs. Sheikh Abdul Hamid (PLD 1961 SC 105). Learned ASC in the 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
6
alternative argued that even if the terms and conditions regulating pension 
have their origin in a contract, the Board of Directors could not unilaterally 
amend them without the consent of the stakeholders. In support of his 
contention learned ASC placed reliance on the case of Nighat Yasmin. Vs. 
Pakistan International Airlines Corporation, Karachi and another (2004 
SCMR 1820). The learned ASC lastly argued that where pension is not only a 
vested but a recurring right, laches or any other inaction for a short span of 
time cannot extinguish it. The learned ASC to support his contention placed 
reliance on the cases of Pakistan Telecommunication Employees Trust 
(PTET) through M. D., Islamabad and others. Vs. Muhammad Arif and others. 
(2015 SCMR 1472), Secretary, Government of Punjab, Finance Department 
and 269 others. Vs. M. Ismail Tayer and 269 others (2015 PLC(CS) 296), 
Constitution Petition No. 127 of 2012, decided on 11.04.2013 regarding 
Pensionary Benefits of the Judges of Superior Court (PLD 2013 SC 829), 
Pakistan Muslim League (N) through Khawaja Muhammad Asif, M.N.A. and 
others. Vs. Federation of Pakistan through Secretary Ministry of Interior and 
others (PLD 2007 SC 642), Pakistan Tobacco Company Ltd. and another. Vs. 
Federation of Pakistan through Secretary, Ministry of Commerce, Islamabad 
and 3 others (1999 SCMR 382), Civil Aviation Authority, Islamabad and 
others. Vs. Union of Civil Aviation Employees and another (PLD 1997 SC 781), 
Shahid Pervaiz. Vs. Ejaz Ahmad and others, etc. (2017 SCMR 206), 
Muhammad Mubeen-us-Salam and others. Vs. Federation of Pakistan 
through Secretary Ministry of Defence and others (PLD 2006 SC 602) and I. 
A. Sharwani and others. Vs. Government of Pakistan through Secretary 
Finance Division, Islamabad and others. (SCMR 1991 1041).    
4. 
 
We have carefully gone through the record and considered 
the submissions of the learned Sr. ASC/ASCs for the parties as well as the 
learned DAG.  
5. 
 
The 
background culminating in the issuance of the 
notification dated 30.11.1977 and the circular dated 26.12.1977 is that a 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
7
Pay Commission through a resolution dated 28.05.1977 was constituted by 
the Government of Pakistan with the following terms of reference:  
 
(i) 
To examine:- 
 
(a) 
the existing salary structure and all other types of 
allowances, amenities and facilities, including post-retirement 
benefits, and all such increase therein as may have been 
sanctioned recently, admissible to all categories of staff and 
employees in the nationalized banks including State Bank of 
Pakistan and financial institutions; 
 
(b) 
the principles on which they are based and the basic terms 
and conditions governing their admissibility; 
 
(c) 
the inter-se relationship of the salaries and allowances and 
other amenities, facilities and benefits and the underlying 
principles and justification of the same; and  
 
(d) 
the problems that may arise and the adjustments that may 
be necessary as a consequence of the scheme of merger of the 
nationalized banks already approved by the Government.  
 
(ii) 
To make recommendations:-  
(a) 
on the need, if any , and the manner in which the existing 
salary structure and other emoluments and the terms and 
conditions governing them should be rationalized or otherwise 
modified taking into account the qualifications and experience 
required for each grade or scale of pay and the allowances and 
perquisites attached thereto; the responsibilities which to be 
discharged at various levels; and the prospects of promotion or 
vertical mobility in each nationalized bank and financial institution;  
 
(b) 
on the treatment that may be given and the adjustments 
that should be made in the pay and emoluments of the staff and 
employees of a nationalized bank which is to be merged with 
another;  
 
(c) 
on the need if any, and the extent to which the existing 
emoluments and other conditions of service require modification, 
taking into account the economic conditions in the country and 
the terms of conditions of service in general and those 
incomparable undertakings in particular, the size, financial sources 
and viability of each nationalized bank or financial institution, the 
role assigned to each in the national economy, the socio-
economic goals and all such other relevant factors;  
 
(d) 
on the ways and means of keeping the terms and 
conditions of service in the banking sector in line with changes in 
the national economy, considering the need of all times for an 
efficient and smooth banking service to the community; and  
 
(e) 
on any other matter which the Commission may consider 
relevant to its terms of reference.” 
 
The commission having considered the socio-economic conditions, the size, 
financial resources and viability of each nationalized Bank and financial 
institution made recommendations. The Federal Government following the 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
8
recommendations issued the notification dated 30.11.1977 while the Bank 
following the notification issued circular No.228(c) dated 26.12.1977.  
6. 
 
What did the Banking Council stand for, what powers did it 
exercise and what functions did it perform under the Banks Nationalization 
Act before its amendment are the questions which have been answered 
by Section 9 of the Act itself which reads as under:-  
 
“9. Pakistan Banking Council. –(1). This section and section 11 shall 
apply to the banks mentioned in the Schedule and any new bank 
which may be constituted after the commencing day, whether by 
merger or reorganization of the said banks or under the 
Companies Act, 1913 (VII of 1913). 
  
(2) 
The Federal Government shall, by notification in the official 
Gazette, constitute a Council to be called the Pakistan 
Banking Council and consisting of – 
 
(i)   A Chairman; 
 
(ii)   A Deputy Governor of the State Bank; 
 
(iii) An official of the Ministry of Finance, Government of 
Pakistan; and  
 
(iv)  Not more than five and not less than three members;  
 
Provided that not less than three members shall be full time 
members one of whom shall be appointed by the Federal 
Government to be the Secretary of the Council.  
 
(3) 
The Council shall be a body corporate having perpetual 
succession and a common seal, with power to acquire and hold 
property, and shall be the name given to it by subsection (2) sue 
and be sued.  
 
(4) 
The functions of the Council shall be— 
 
(i)   making policy recommendations to the Federal 
Government for directing banking activities towards 
national socio-economic objective;  
 
(ii)   formulating policy guidelines for the banks;  
 
(iii)   laying down performance criteria for banks, and 
taking steps for ensuring their observance;  
 
(iv)   evaluating the performance of the banks in the 
context or national socio-economic objectives and policy 
guidelines issued to the banks; 
 
(v)  determining the areas of coordination of the banks;  
 
(vi)  formulating schemes under Section 15; 
 
(vii)  making recommendations to the Federal Government 
for the appointment of the President and members of an 
Executive Board; 
 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
9
(viii)   analyzing and appraising financial statements, 
including Balance sheets and Profit and Loss Accounts, of 
the banks and appointment of auditors of the banks;  
 
(ix)   conducting such surveys, inquiries and appraisals as 
may be necessary for the purposes of this Act; and 
(x)  exercising and performing such powers and functions 
of the Federal Government under this Act, and such other 
functions, as the Federal Government may assign to it.  
 
(5) 
For the proper exercise of its functions, the Council may 
require information, returns or periodical and special reports from 
banks.  
 
(6) 
The Council may appoint such officers, employees, experts 
and consultants as it may deem fit.” 
 
The Council as is evident from the provisions reproduced above had a role 
in making policy, exercising such powers and performing such functions of 
the Federal Government and other functions as the Federal Government 
assigned. Even the President and members of an Executive Board were 
appointed on the recommendations of the Council. But what bearing its 
dissolution and other amendments in the Act would have on the fate of this 
case is a question we propose to discuss in the latter part of the judgment.   
7. 
 
Now the question arises what is the status of the notification 
dated 30.11.1977 and what is status of the Circular dated 26.12.1977. Before 
we answer the question it is worthwhile to refer to the notification and the 
circular which read as under :-  
 
“No.17(9)-IF.XI/77 
Government of Pakistan 
Finance Division 
(Internal Finance Wing) 
 
Islamabad, the 30th Nov, 1977 
 
From:  Shafat Ahmad, 
Section Officer,  
Phone 21545 
 
To  
Mr. M. A. K. Yousufi, 
Chairman, 
Pakistan Banking Council,  
8-Habib Bank Plaza,  
Karachi. 
 
Sub: 
PENSIONS AND RETIREMENT BENEFITS FOR OFFICERS/EXECUTIVES OF 
BANKS AND FINANCIAL INSTITUTIONS. 
 
Dear Sir, 
 
I am directed to say that with a view to provide better social security, it 
has been decided to introduce pension and retirement benefits for the 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
10
officers/executives of the banks including the State Bank of Pakistan and 
financial institutions as have been introduced by the Federal Government 
for Civil Servants. The pension scheme also includes the benefit of family 
pension to the officers, executive’s wife and or to his children in the case 
of demise of the pensioner. The existing scheme of pension in the case of 
the National Bank of Pakistan. Contributory Provident Fund and Gratuity 
shall be discontinued.  
 
2. 
 
The previous continuous service of officer/executive shall 
count as qualifying service for pension. The contribution made by the 
bank and financial institution towards the Contributory Provident 
Fund/shall be withdrawn as the service shall now count for the purpose of 
pension. The contribution of the officers/executives plus interest thereon 
standing in their respective Provident Fund Account shall be transferred 
and credited to the Provident Fund Accounts to be established under the 
now Provident Fund Scheme.  
 
 
 
A. DATE OF EFFECT 
3. 
 
These benefits shall be admissible with effect from May, 
1977 and shall be determined in accordance with the following 
provisions:-  
 
 
 
B. PATE AND SCALE OF PENSION 
 
4. 
(a) 
Pension shall be payable if the total service of an 
officer/executive at the time of retirement or death is 10 years or more. 
Gratuity shall be payable if the service of an officer/executive at the time 
of retirement or death is more than 5 years but less than 10 years.  
 
 
(b) 
Pension shall be calculated at the rate of 70% of 
emoluments on completion of 30 years qualifying service. Where 
qualifying service is less than 30 years but not less than 10 years 
proportionate reduction in percentage shall be made. Any amount of 
pension in excess of Rs.1000/- shall be reduced by 50% on Pension Table 
regulating all the four pensions, namely, Compensation Pension, 
Superannuation Pension, Invalid Pension and Retiring Pension is enclosed 
as Annexure-I.  
 
 
(c) 
If, for a pensioners with qualifying service of 30 years or 
more, the amount of a pension calculated under sub-para (b) above falls 
short of the amount to pension inclusive of dearness increases) which 
would have been admissible to a Government servant under the Federal 
Government rules prior to 1.2.1977, or exceeds it by less than Rs.45/-, the 
amount under the formula mentioned herein shall be so increased as to 
make such difference one of 1.45/-. Where qualifying service is less than 
30 years but not less than 10 years proportionate reduction at the rate of 
Rs.1/50 for each year short of years shall be made while working out the 
amount of minimum increase mentioned above.  
 
 
(d) 
All spells of continuous service of one year or more 
rendered by an officer/executive shall count and qualify for pension or 
gratuity as the case may be. In calculating the total length of service for 
the purposes of the admissibility of pension or gratuity the period of 
interruption of service and leave without pay shall be excluded. Total 
service thus calculated be refunded off to the nearest full year. A period 
of less than six months shall be ignored for this purpose and of more than 
six months counted as full year.  
 
 
(e) 
The term “emoluments” i.e. pensionable pay, shall also 
include dearness allowances sanctioned from time to time.    
 
 
(f) 
Pension shall be calculated on the basis of the average 
monthly 
basic 
pay 
plus 
dearness 
allowances 
drawn 
by 
an 
officer/executive during the last three years of service including the 
period of leave but excluding the extraordinary leave without pay.  
 
 
G. Gratuity for Service of less than 10 years but not less than 5 years.  
 
5. 
In case of an officer/executive who has rendered service of 5 
years or more but less than 10 years a gratuity equal to one month’s 
emoluments for each completed year of service may be granted to him 
on retirement. If, however, retirement is due to invalidation or if 
officer/executive dies in service, the rate shall be 1/1…. Months 
emoluments for each completed years of service. In the case of death of 
such an officer/executive, it shall be payable to his legal heir(s).  
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
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B- Gratuity and Commutation for Pensioners Retiring After 10 years service.  
 
6. 
(a) 
A pensioner shall be allowed to draw full gross-pension for 
one fourth of the pension under this scheme need not compulsorily be 
paid in the form of gratuity. If, however, a pensioner so wishes, he may, at 
any time before expiry of one month from the date of his retirement, ask 
for gratuity upto 25% of his gross pension together with the remaining net 
amount of pension; the gratuity shall be paid at the following rates :-  
 
If qualifying service is 
10 years or more but 
less than 15 years.  
Rs.187 for every rupee of 
pension surrendered. 
If qualifying service is 
15 years or more but 
less than 20 years.  
Rs.173 for every rupee 
of pension surrendered. 
If qualifying service in 
20 years or more.  
Rs.160 for every rupee 
of pension surrendered. 
  
(b) 
Commutation of 25% of the gross pension shall be further 
admissible in accordance with the Civil Pensions (Commutations Rules) as 
applicable to the Federal Government employees. Commutation shall, 
however, not be subject to medical certification if it is asked for within one 
year of retirement. The payment in such cases shall become absolute on 
the date of application by the pensioner. This concession of commutation 
without medical certification is not admissible to those officers/executives 
who retire on invalid pension.  
 
 
 
E- Family Pension 
 
7. 
(a) 
In the case of death of an officer/executive while in 
service, gratuity in lieu of one fourth of the gross pension will be allowed at 
the rates shown in para 6(a). In addition, family pension shall be 
admissible for a period of 10 years at 50% of the gross pension.  
 
 
(b) 
In the case of death within 10 years of retirement, family 
pension for unexpired period of 10 years at 50% of the pension (not, or 
gross, as the case may be) shall be admissible.  
 
 
(c) 
Subsidiary rules and procedure in connection with the 
sanction and receipt of pension shall be framed by the institution 
concerned.  
 
F. Pensions/Gratuity for Injury or Death in course or consequence of duty.  
 
8. 
 
The classification of disabilities and the criteria for 
determining their attributability to service shall be as detailed in Annexure 
III. The rate and scale of disability/death pension and gratuity shall be as 
under :-  
 
 
 
DISBILITY PENSION/GRTUITY  
 
 
 
 
Class of 
Injury 
Pension 
Gratuity 
Child 
without 
own mother 
Child with one 
mother living 
A 
20% of pay subject to a 
maximum of Rs.600 and 
a minimum of Rs.100 
p.m. (Note: After death 
it will devolve on the 
widow). 
6 months pay. 
5% 
of 
pay, 
subject 
to 
a 
maximum 
of 
Rs.100 
& 
minimum 
of 
Rs.50/- per child.  
2 
½ 
of 
pay 
subject 
to 
a 
maximum 
of 
Rs.50/- 
and 
a 
minimum 
of 
Rs.25/- per child. 
B 
15% of pay subject to a 
maximum of Rs.450 and 
a minimum of Rs.75 
p.m. 
Nil 
4% 
of 
pay, 
subject 
to 
a 
maximum 
of 
Rs.80/- 
& 
Minimum 
of 
Rs.40/- per child.  
2% 
of 
pay 
subject 
to 
a 
maximum 
of 
Rs.40/- 
and 
a 
minimum 
of 
Rs.20/- per child.  
C 
-do- 
Nil 
Nil 
Nil 
 
 
DEATH (SPECIAL FAMILY) PENSION/ GRATUITY 
 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
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1. 
20% of pay subject to a 
maximum of Rs.600 and 
a minimum of Rs.100 
p.m. 
6 months pay. 
5% 
of 
pay, 
subject 
to 
a 
maximum 
of 
Rs.50  per child.  
2 
½ 
of 
pay 
subject 
to 
a 
maximum 
of 
Rs.50/- 
and 
a 
minimum 
of 
Rs.25/- per child. 
 
Note :- The pensions/gratuities mentioned in this para will be in addition 
to the pensions and/or gratuities mentioned in paras 3 to 6 above.  
 
9. 
An Officer who was in non-pensionable service on 1st May, 77 and 
who was entitled to the benefits of contributory Provident Fund, shall, 
unless the amount of the Contributory Provident Fund has been paid be 
allowed to opt) for the new scheme of Pension, Gratuity and Provident 
Fund, in lieu of the existing retirement benefits admissible to him. This 
option shall be exercised in writing and communicated to the competent 
authority within 6 months from the date of the issue of these orders. Those 
offices who do not exercise and communicate the options for the 
pensionary benefits sanctioned in this letter within the prescribed time 
limit, shall not be entitled to the benefits thereof and shall continue on 
their existing terms.  
 
Since the rates of pension and gratuity given above have been fixed by 
the Pay Commission for banks and financial institute the same lines as 
obtaining on the side of the Federal Government and existing provisions 
and any changes or revision in the scales of pension or gratuity that may 
hereafter be made by the Federal Government shall also apply to the 
officers/executive including the State Bank of Pakistan and financial 
institution.  
 
Yours faithfully 
 
Sd/- 
Shafat Ahmed 
Section Officer 
Encl: 3 Annexure.” 
 
 
8. 
 
While the Circular dated 26.12.1977 reads as under :-  
 
“National Bank of Pakistan 
Head Office Karachi  
Instruction Circular No. 228 (C).   December 26, 1977 
Establishment 
Pensions and Retirement Benefits  
for Officers/Executives of Banks. 
1. 
Further to our Circular No. 228 (B), it is advised that the Finance 
Division, Government of Pakistan, Islamabad has decided to introduce 
Pensions and retirement benefits for the officers/executives of the Banks as 
have been introduced by the Federal Government for Civil Servants. The 
pension scheme also includes the benefit of family pension to the 
officers/executive’s wife and or to his children in the case of demise of the 
pensioner.  
 
2. 
The previous continuous service of officer/executive shall count as 
qualifying service for pension. The contribution made by the bank towards 
the Contributory Provident Fund shall be withdrawn as that service shall 
now count for the purpose of pension. The contribution of the 
officers/executives plus interest thereon standing in their respective 
Provident Fund Account shall be transferred and credited to the Provident 
Fund Accounts to be established under the new Provident Fund Scheme.  
 
 
 
A- Date of Effect 
3. 
These benefits shall be admissible with effect from 1st May, 1977 
and shall be determined in accordance with the following provisions :-  
 
 
 
B- Rate and Scale of Pension 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
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4. 
a) 
Pension shall be payable if the total service of an 
officer/executive at the time of retirement or death is 10 years or more. 
Gratuity shall be payable if the service of an officer/executive at the time 
of retirement or death is more than 5 years but less than 10 years.  
 
 
b) 
Pension shall be calculated at the rate of 70% of average 
emoluments on completion of 30 years qualifying service. Where 
qualifying service is less than 30 years but not less than 10 years, 
proportionate reduction in percentage shall be made. Any amount of 
pension in excess of Rs.1,000/- shall be reduced by 50%. A Pension Table 
regulating all the four pensions, namely, Compensation Pension, 
Superannuation Pension, Invalid Pension and Retiring Pension is enclosed 
as Annexure I.  
 
 
c) 
If, for a pensioner with qualifying service of 30 years or 
more, the amount of a pension calculated under sub-para (b) above falls 
short of the amount of pension (inclusive of dearness increases) that 
would have been admissible to a Government servant under the Federal 
Government rules prior to 1.2.1977, or exceeds it by less than Rs.45/-, the 
amount under the formula mentioned herein shall be so increased as to 
make such difference one of Rs.45/-. Where qualifying service is less than 
30 years but not less than 10 years, proportionate reduction at the rate of 
Rs.1/50 for each year short of years shall be made while working out the 
amount of minimum increase mentioned above.  
 
 
d) 
All spells of continuous service of one year or more 
rendered by an officer/executive shall count and qualify for pension or 
gratuity as the case may be. In calculating the total length of service for 
the purposes of the admissibility of pension or gratuity, the periods of 
interruption of service and leave without pay shall be excluded. Total 
service thus calculated be rounded off to the nearest fully year. A period 
of less than six months shall be ignored for this purpose and of more than 
six months counted as full year.  
 
 
e) 
The term “emoluments”, i.e. Pensionable pay, shall also 
include dearness allowances sanctioned from time to time.  
 
 
f) 
Pension shall be calculated on the basis of the average 
monthly 
basic 
pay 
plus 
dearness 
allowances 
drawn 
by 
an 
officer/executive during the last three years of service including the 
period of leave but excluding the extra-ordinary leave without pay.  
 
C-  Gratuity for Service of less than 10 years but not less than 5 years.   
 
5. 
In case of an officer/executive who has rendered service of 5 
years or more but less than 10 years a gratuity equal to one month’s 
emoluments for each completed year of service may be granted to him 
on retirement. If, however, retirement is due to invalidation, or if an 
officer/executive dies in service, the rate shall be 1 ½ months of 
emoluments for each completed year of service. In the case of death of 
such an officer/executive, it shall be payable to his legal heir(s). 
 
D-Gratuity and Commutation For Pensioners Retiring After 10 years 
Service.  
 
6. 
a) 
A pensioner shall be allowed to draw full gross pension i.e. 
one forth of the pension under this scheme need not compulsorily be paid 
in the form of gratuity. If, however, a pensioner so wishes, he may, at any 
time before expiry of one month from the date of his retirement, ask for 
gratuity upto 25% of his gross pension together with the remaining net 
amount of pension; the gratuity shall be paid at the following rates :-  
 
 
If qualifying Service is 10 years or more but 
less than 15 years.  
Rs.187 
for 
every 
rupee 
of 
pension 
surrendered.  
If qualifying service is 15 years or more but 
less than 20 years.  
Rs.173 
for 
every 
rupee 
of 
pension 
surrendered. 
If qualifying service is 20 years or more.  
Rs.160 
for 
every 
rupee 
of 
pension 
surrendered. 
 
b) 
Commutation of 25% of the gross pension shall be further 
admissible in accordance with the Civil Pensions (Commutations Rules) as 
applicable to the Federal Government employees. Commutation shall, 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
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however, not be subject to medical certification if it is asked for within one 
year of retirement. The payment in such cases shall become absolute on 
the date of application by the pensioner. This concession of commutation 
without medical certification is not admissible to those officers/executives 
who retire on invalid pension.  
 
 
E-Family Pension 
7. 
a) 
In the case of death of an officer/executive while in 
service, gratuity in lieu of one forth of the gross pension will be allowed at 
the rates shown in para 6(a). In addition, family pension shall be 
admissible for a period of 10 years at 50% of the gross pension.  
 
 
b) 
In the case of death within 10 years of retirement, family 
pension for unexpired period of 10 years at 50% of the pension (net, or 
gross, as the case may be) shall be admissible.  
 
 
c) 
Subsidiary rules and procedure in connection with the 
sanction and receipt of pension shall be framed by the institution 
concerned.  
 
F-Pensions/Gratuity for Injury or Death in course or consequence of duty.  
8. 
 
The classification of disabilities and the criteria for 
determining their attributability to service shall be as detailed in (annexure 
III). The rate and scale of disability/death pension and gratuity shall be as 
under :-  
 
 
Class of 
Injury 
Pension 
Gratuity 
Child 
without 
own mother 
Child with one 
mother living 
A 
20% of pay subject to a 
maximum of Rs.600 and 
a minimum of Rs.100 
p.m. (Note: After death 
it will devolve on the 
widow). 
6 months pay. 
5% 
of 
pay, 
subject 
to 
a 
maximum 
of 
Rs.100 
& 
minimum 
of 
Rs.50/- per child.  
2 
½ 
of 
pay 
subject 
to 
a 
maximum 
of 
Rs.50/- 
and 
a 
minimum 
of 
Rs.25/- per child. 
B 
15% of pay subject to a 
maximum of Rs.450 and 
a minimum of Rs.75 
p.m. 
Nil 
4% 
of 
pay, 
subject 
to 
a 
maximum 
of 
Rs.80/- 
& 
Minimum 
of 
Rs.40/- per child.  
2% 
of 
pay 
subject 
to 
a 
maximum 
of 
Rs.40/- 
and 
a 
minimum 
of 
Rs.20/- per child.  
C 
-do- 
Nil 
Nil 
Nil 
    
DEATH (SPECIAL FAMILY) PENSION/ GRATUITY 
 
1. 
20% of pay subject to a 
maximum of Rs.600 and 
a minimum of Rs.100 
p.m. 
6 months pay. 
5% 
of 
pay, 
subject 
to 
a 
maximum 
of 
Rs.100 
& 
A 
minimum 
of 
Rs.50/- per child.  
2 
½ 
of 
pay 
subject 
to 
a 
maximum 
of 
Rs.50/- 
and 
a 
minimum 
of 
Rs.25/- per child. 
 
Note :- The pensions/gratuities mentioned in this para will be in addition 
to the pensions and/or gratuities mentioned in paras 3 to 6 above.  
 
9. 
An officer who was in non-pensionable service on 1st May, 1977 
and who was entitled to the benefits of Contributory Provident Fund, shall, 
unless the amount of the Contributory Provident Fund has been paid be 
allowed to opt for the new scheme of Pension, Gratuity and Provident 
Fund, in lieu of the existing retirement benefits admissible to him. This 
option shall be exercised in writing and communicated to the competent 
authority within 6 months from the date of the issued of these orders. Those 
officers who do not exercise and communicate their options for the 
pensionery benefits sanctioned in this circular within the prescribed time 
limit, shall not be entitled to the benefits thereof and shall continue on 
their existing terms.  
 
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10. 
Since the rates of pension and gratuity given above have been 
fixed by the Pay Commission for banks and financial institutions one the 
same lines as obtaining on the side of the Federal Government, the 
existing provisions and any changes or revision in the rates or scales of 
pension or gratuity that may hereafter be made by the Federal 
Government shall also apply to the officers/executives of the Bank.  
 
11. 
The existing schemes of Pension, Contributory Provident Fund and 
Gratuity shall be discontinued.   
 
 
Sd/- 
 
 
            Sd/- 
(HUMAYUN AKHTAR ADIL) 
 
(MOHAMMAD USMAN) 
EXECUTIVE VICE PRESIDENT 
 
SENIOR EXECUTIVE VICE PRESIDENT 
PERSONNEL DIVISION  
 
ADMINISTRATION.” 
 
9. 
 
A look at the notification reproduced above would show that 
it provided a comprehensive basis for determination of rate and scale of 
pension. This notification has not been termed as the one notifying the rules 
but it in its tone and tenor possesses all such attributes from whatever angle 
it is looked at. It has not been stated in the notification that it has been 
issued under Section 20 of the Banks Nationalization Act but the fact is that 
no other provision of the Act could enable the Federal Government to issue 
a notification dealing with the matters envisaged by Section 20 of the Act. 
The words used in para 1 to 10 of the notification leave no doubt that it was 
issued under Section 20 of the Act. Issuance of the circular, which is almost 
replica of the notification confirms its status as a statutory instrument. Para 
one of the notification rescinding and replacing the existing scheme of 
pension, the Contributory Provident Fund and Gratuity by providing in para 
1 that “the existing scheme of pension in the case of National Bank of 
Pakistan, the Contributory Provident Fund and Gratuity shall be 
discontinued” amply and overwhelmingly proves its statutory status. It 
would be rather unjust and even unrealistic to treat such notification as an 
administrative or executive instruction when it admittedly rescinded and 
replaced the existing scheme of Pension Contributory Provident Fund and 
Gratuity having their origin in the NBP’s employees Pension Provident and 
Gratuity Rules, 1958 made with the prior approval of the Central 
Government and the N.B.P. (Staff) Service Rules, 1973 made with the prior 
approval of the Federal Government. It cannot be looked at as a bolt from 
the blue either when it was preceded by an extensive spadework of the 
Pay Commission and succeeded by the circular dated 26.12.1977. In this 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
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context the notification cannot be construed as an event independent of 
Section 20 of the Act or isolated therefrom. It also does not appear to be 
deficient on any score when examined in the light of the criteria laid down 
in the case of Mustafa Impex. Vs. Government of Pakistan (supra), when 
nothing has been brought on the record to show that any of the provisions 
of the Rules of Business, 1973 was ignored or violated. We, therefore, have 
no hesitation to hold that the notification dated 30.11.1977 having been 
issued by the Federal Government in terms of Section 20 of the Act is 
statutory in nature and violation of any of its provisions is amenable to the 
constitutional jurisdiction of the High Court. The case of Muhammad Zaman 
and others. Vs. Government of Pakistan through Secretary, Finance Division 
(Regulation Wing), Islamabad and others (supra) has therefore no 
relevance to the case in hand.  
10. 
 
Next comes the question as to what are the functions of the 
Board and whether the Board after the dissolution of the Pakistan Banking 
Council has the power to rescind, replace or repeal the notification issued 
by the Federal Government of Pakistan in terms of Section 20 of the Act. To 
answer these questions we have to see the relevant provisions of the Act 
dealing with the powers of the Board. It thus 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 
5[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) The Federal Government may, if it deems necessary, appoint a 
Chairman of the Board in respect of a bank. 
 
(3) The Chairman, the President, and other members of the Board 
1[representing the Federal Government’s direct and indirect 
shareholding”]___ 
 
(a) shall be appointed by the Federal Government, in consultation 
with the State Bank, for a term of three years, on such terms and 
conditions as may be fixed by the General Meeting of the bank: 
provided that the Chairman and the President shall be appointed 
from amongst professional bankers whose names are included in a 
panel of bankers qualified to be the Chairman or the President, 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
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which panel shall be determined, maintained and varied, from 
time to time, by the State Bank ; 
 
(b) may be removed for misconduct or physical and mental 
incapacity before the expiry of the three years term by the Federal 
Government in consultation with the State Bank; 
 
(c) shall stand removed if he becomes ineligible on any of the 
grounds specified in subsection (12); and 
 
(d) may be reappointed by the Federal Government, in 
consultation with the State Bank of Pakistan, 2[for such further term 
or terms as may be determined.”.] 
 
(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 banks ; 
 
(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) The Board shall appoint committees from amongst the 
executives of the bank, and determine the powers, functions and 
duties of such committees. 
 
(8) Where the Federal Government has appointed a Chairman, he 
shall preside over the meetings of the Board, and in case a 
Chairman has not been appointed, then the President shall 
preside over the meetings of Board. In the absence of the 
Chairman or the President, as the case may be, the directors may 
elect one of the member to preside over the meetings. 
 
(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 transfer of employee of banks 
except the President and decisions as to their remuneration and 
benefits shall be made by the President in accordance with the 
evaluation criteria and personnel policies determined by the 
Board. 
 
(11) The Board, the President and other officers shall exercise their 
powers and discharge their duties in accordance with sound 
banking principles and prudent banking practices and shall ensure 
compliance with regulations and directions that may be issued by 
the State Bank from time to time. 
 
(12) No person shall be eligible for appointment as the Chairman, 
the President, or a member of the Board if— 
 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
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(a) he is or has at any time been adjudged insolvent or has 
suspended payment or has compounded with his creditors ; or 
 
(b) he is a minor or is found a lunatic or of unsound mind ; or 
 
(c) he is not citizen of Pakistan ; or 
(d) he was at any time in the service of the Federal Government or 
a corporation controlled by any such Government or in the service 
of a bank and was dismissed ; or 
 
(e) he is a person against whom any action has been taken or any 
proceedings are pending under section 412 of the Companies 
Ordinance, 1984, (XLVII of 1984) or section 83 of the Banking 
Companies Ordinance, 1962 ; (LVII of 1962) or 
 
(f) he is, or has been, convicted for tax evasion under any law for 
the time being in force ; or 
 
(g) he is a member of the Senate, National Assembly, any 
Provincial Assembly or an elected Member of a local council 
constituted under any law relating to local councils ; or 
 
(h) he is holding an office in a political party. ]” 
11. 
 
A careful reading of the provisions reproduced above would 
reveal that the Board with the dissolution of the Pakistan Banking Council 
became more autonomous and independent in managing the Bank and 
determining the terms and conditions of services of the officers and 
executives of the bank. It, in exercise of such powers, introduced circular 
No.3799, dated 16.6.1999 revising the pay structure bringing substantial 
increase in the salaries of the officers and executives of the bank. It, 
however, has not been given a power by any of the provisions in general 
and Section 11 of the Act in particular to rescind, replace or repeal a 
statutory dispensation already in force. In the case of Muhammad Tariq 
Badr and another. Vs. National Bank of Pakistan and others (2013 SCMR 
314) this Court while dealing with a similar controversy held as under :-  
“It is an admitted position that 1980 Rules have not been framed 
as per the mandate of law ibid, inasmuch as these rules are 
neither made by the Federal Government nor published in the, 
official gazette. There is also no cavil/quibble that the said rules 
have not been composed/enforced with the prior approval of the 
Government or any subsequent benediction was conferred to 
those by the Government. Rather (admittedly) the rules have 
been formulated by the Board of the respondent-bank constituted 
under section 11 of the Act, 1974 which stipulate  the  general  
power  of  the  Board  pertaining  to  policy making and the 
administration and management of the nationalized banks. 
Subsection (4) thereof specifically provides "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 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
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Board". Furthermore, as per subsection (5) of the Act, 1974 the 
Board shall determine "personal policies of the bank, including 
appointment and removal of officers and employees" and in 
accordance with subsection (10) "All selections, promotion and 
transfer of employees of banks except the President and decisions 
as to their remuneration and benefits shall be made by the 
President in accordance with the evaluation criteria and 
personnel polices determined by the Board". From the above it is 
unequivocally clear that the 1980 Rules have been framed by the 
Board of the bank pursuant to its authority in the nature of 
management/ superintendence of the affairs of the bank and/or 
the policy making power; however for all intents and purposes, it is 
so done in the exercise of an executive authority under the 
statute, but having even no remote or possible or permissible 
connection and nexus to any statutory jurisdiction, these rules thus 
can at best be termed, understood, comprehended and 
construed merely as the guidelines or the domestic instructions of 
the N.B.P., for the purposes of highlighting, elucidating or 
beneficially revamping the service structure of bank's employees 
for their advantage, provided the same do not in any manner 
contravene the 1973 Rules, but nothing more than that can be 
imputed to those; and in any case the rules do not enjoy the status 
of a statutory instrument.” 
12. 
 
Now a question arises where Section 20 of the Act provided 
that the Federal Government may by notification in the official gazette, 
make rules to provide for all matters for which provision is necessary or 
expedient for the purpose of giving effect to the provisions of the Act, what 
would be the consequence of its failure to have it published in the official 
gazette? The answer to the question was given in detail in the case of 
SAGHIR AHMED through Legal Heirs. Vs. PROVINCE OF PUNJAB through 
Secretary, Housing and Physical Planning Lahore and others  (PLD 2004 SC 
261) in the words as follows:-  
10. Even otherwise, the provisions of a statute for the publication or 
a notification in official Gazette are generally regarded by the 
Courts as directory and where their strict non-compliance does 
not provide any consequences. The legal certainty also requires 
that ordinarily a statutory instrument should not be treated as 
invalid because of a failure on the part of public functionaries to 
publish it in the official Gazette. There may be many things done 
on the basis of such an instrument. It would seem unfortunate were 
these things held to be invalid if it were at some stage discovered 
that there had been a failure by a public authority to go 
meticulously by the manner and mode of publication of an 
instrument or notification in the Official Gazette. In the case of 
Multiline Associates v. Ardeshir Cowasjee and 2 others (PLD 1995 
SC 423) this Court took the view that even if Karachi Building and 
Town Planning Regulations, 1979 were not published in the official 
Gazette under section 21-A(3) of the Sindh Buildings Control 
Ordinance, 1979, they could be construed and acted upon as 
regulations for the purpose of the said Ordinance. In Pakistan 
through Secretary, Ministry of-Defence and others v. Late Ch. 
Muhammad Ahsan (1991 SCMR 2180), the factual acquisition of 
land had not been denied and same had been acted upon for 
nearly 50 years and there was an airfield in the land for such a 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
20
long time. The notice/notification although had been signed and 
issued to all concerned but had not been gazetted. In other 
words, the purpose of the publication in the ordinary sense was 
practically 
served 
almost 
contemporaneously 
when 
the 
acquisition took place and in fact it was more substantial 
publication insofar as the owners were concerned than if it would 
have been in the official Gazette. It was further observed that 
mere fact that publication in the Gazette was delayed, would not 
invalidate the notification. A somewhat similar view was taken in 
Muhammad Siddique v. Market Committee, Tandlianwala (1983 
SCMR 785). In the case of Manzur-ul-Haq v. Controlling Authority, 
Local Councils, Montgomery and others (PLD 1963 SC 652) it was 
held, by reference to the provisions of Article 26 of the Basic 
Democracies Order, 1959, and section 17 of the Municipal 
Administration Ordinance, 1960, that mere provision in a statute for 
notifying name of holder of office in Gazette was not a condition 
precedent to the holding of the office. In Chief Commissioner, 
Karachi v. Jamil Ahmed and another PLD 1961 SC 145 the Court 
held that the provision in section 280(1) of the City of Karachi 
Municipal Act, (1933) relating to general elections being notified in 
official Gazette was directory and not mandatory and a 
substantial compliance with that would be enough. In Regina v. 
Sheer Metalcraft Ltd. and another (1954 1 QB 586), Lord Streatfeild, 
J., took the view that "a statutory instrument, made by a Minister or 
other competent authority was valid and effective as soon as it 
was made, notwithstanding that the provisions of the Statutory 
Instruments Act, 1946, and the regulations, mode thereunder 
relating to the printing and issuing of statutory instruments had not 
been complied with". 
 
We, agreeing with the dictum reproduced above, reaffirm that failure to 
have the notification published in the official gazette would not shear it off 
its statutory status.  
13. 
 
The argument of the learned Sr. ASC for the appellant that 
where Circular No. 3799 dated 16.06.1999 bringing substantial increase in 
salaries of the officers and executives of the bank and reducing the 
pension factor was accepted and acted upon by the officers and the 
executives of the bank without any qualms for more than a decade, they 
could not have turned around to question it so long as they do not refund 
the increase in the salary, does not have much force firstly because the 
respondents never sat idle or slept over their rights emanating from the 
circular dated 30.1.1977 as is evident from their correspondence at 
different levels and secondly because there could be no estoppel against 
the statute or the rules having statutory force. The argument that such 
petitions are also hit by the principle of laches when they were instituted 
more than ten years after the issuance of the circular dated 16.06.1999 is 
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
21
also devoid of force when the respondents have been questioning the 
circular reducing the pension factor at different fora and stages. Even 
otherwise, the principle of laches cannot be over emphasized when 
pension is a recurring right as has been held in the cases of Pakistan 
Telecommunication Employees Trust (PTET) through M. D., Islamabad and 
others. Vs. Muhammad Arif and others, Secretary, Government of Punjab, 
Finance Department and 269 others. Vs. M. Ismail Tayer and 269 others, 
Constitution Petition No. 127 of 2012, decided on 11.04.2013 regarding 
Pensionary Benefits of the Judges of Superior Court, Pakistan Muslim League 
(N) through Khawaja Muhammad Asif, M.N.A. and others. Vs. Federation of 
Pakistan through Secretary Ministry of Interior and others, Pakistan Tobacco 
Company Ltd. and another. Vs. Federation of Pakistan through Secretary, 
Ministry of Commerce, Islamabad and 3 others, Civil Aviation Authority, 
Islamabad and others. Vs. Union of Civil Aviation Employees and another, 
Shahid Pervaiz. Vs. Ejaz Ahmad and others, etc., Muhammad Mubeen-us-
Salam and others. Vs. Federation of Pakistan through Secretary Ministry of 
Defence and others and I. A. Sharwani and others. Vs. Government of 
Pakistan through Secretary Finance Division, Islamabad and others (supra).  
14. 
 
The argument of the learned ASC for the respondents that the 
notification issued by the Finance Division, Government of Pakistan and 
Circular No. 228(C) issued by the Bank could be treated at par with the 
statutory rules when they have been acted upon for decades and 
decades together would loose its relevance and so would the judgments 
rendered in the cases of Pakistan. Vs. Sheikh Abdul Hamid, Dr. Habibur 
Rahman. Vs. The West Pakistan Public Service Commission, Lahore and 4 
others, Khan Faizullah Khan. Vs. Government of Pakistan through the 
Establishment Secretary, Cabinet Secretariat and another(supra), once we 
have held above that the notification dated 30.11.1977 having been issued 
by the Federal Government in terms of Section 20 of the Act is statutory in 
nature.    
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015 
AND CIVIL APPEALS NO. 632 TO 673 OF 2017 
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15. 
 
As a sequel to what has been discussed above, we allow Civil 
Appeal No. 353 of 2015 alongwith the CMAs. No. 1493 and 2070 of 2015, set 
aside the judgment of the Peshawar High Court whereas we dismiss the 
Civil Appeals No. 632 to 673 of 2017 filed by the National Bank of Pakistan 
and maintain the judgment of the Lahore High Court, dismissing the Intra 
Court Appeal.   
JUDGE 
 
JUDGE 
 
JUDGE 
 
Announced in open Court at Islamabad on __________________.  
 
JUDGE 
‘Not Approved for Reporting’ 
M. Azhar Malik