The Industrial Relations Advisers,

Management & Labour Laws Consultants


Room 3, 1st floor, Falaknuma Building, Near The Laboratory & Haroon Radio, Abdullah Haroon Road, Karachi

Phone: 32727266 & 32729770 Fax: 32729770 (S M Iqbal)  Email: 




Circular No. C-128                                                                                                                   Date:- 24-05-2011




Regional Head

Employees Old-Age Benefits Institution






Sub: Show Cause Notice


Dear Sir,         


                        On behalf of our client _______________________________ we would like to address you as under:-


1-                 You wrote your letter Ref. No. EOBI (KBD) R&C/10 dated 16-03-2010 for registration of the establishment of our client as provided by Section 11 of the EOB Act, 1976 but before their reply they were surprised to receive the Certificate of Registration dated 31-05-2010 farwarded with your letter dated 31-05-2010 bearing the date of registration as 27-05-2010 and date of application of the Act prior to registration as back date as from July, 2008 unilaterally with malafide intentions while sitting in your office and without associating our client to get the necessary details/information from them.

2-                 The above was fallowed by your demand and Notice dated 03-12-2010 under Section 79 of the Land Revenue Act, 1967 self styling yourself as Asst. Collector Grade-I  demanding payment of Rs. 189216/= for the period July, 2008 to June, 2010 from back date prior to the date of registration on 27-05-2010 without any basis while sitting in your office.

3-                 The said registration certificate dated 31-05-2010 under the name of EOBI contains the words “under the control of Government of Pakistan Ministry of Labour, Manpower and overseas Pakistani (Labour Division)” which is nothing but deliberate false hood and misrepresentation with malafide intentions to harass, pressures and brow beat the parties as the Institution is a statutory body created by the EOB Act, 1976 and not a Government Department or under the Federal Ministry of Labour as held by the NIRC-Single Bench, NIRC – Full Bench, Sindh High Court and the Supreme Court reported in law Journals and copies of these orders/decisions are with the Law Department of the Institution being a party in all these cases such misrepresentation with malafide intentions by you amounts of criminal offence for which you are liable to be prosecuted. 

4-                 Section 13(2) of the EOB Act, 1976 and Section 23(2) of the P.E. Social Security Ordinance, 1965 both contain identical provision, “may be recovered as arrears of land revenue” which only means that the amount finally determined may be recovered as arrears of land revenue by the Collector Land Revenue under the process and procedure given under the Land Revenue Act, 1967. There are similar provisions in several other laws and also for recoveries to be made under the orders of the courts but neither such departments nor the courts become/assume as Collector of Land Revenue as claimed by you misusing the above provision of the Act and any such notification managed is illegal, void and invalid. This question came before a D.B. of the Sindh High Court in the case of M/s Exact private Ltd. V/s SESSI reported at 2009 PLC (C.S.) – 799 which interpreted the said Section 23 of the P.E.S.S. Ordinance, 1965 and held that the actions of officials of the Institution under the Land Revenue Act, 1967 were illegal, void ab initio, ultra vires and against the provisions of the Ordinance and for the propose of recovery of arrears of land revenue complete and comprehensive procedure is provided in Chapter VIII of the Land Revenue Act, 1967. This decision totally and fully applies on Section 13 of the EOB Act, 1976 and, therefore, you claim to be the Asst. Collector Grade I is absolutely illegal and void.         

5-                 For recovery of any amount as arrears of land revenue the matter has to be referred to the Collector Land Revenue under the Land Revenue, Act, 1967 for necessary action as per previsions, process and procedure contained in it. It may also be noted that action under the Land Revenue Act, 1967 cannot be taken as the first step but only after the amount of arrear has been finally determined after exhausting the remedies provided in the Act as held by the Sindh High Court in the case of M/s General Tyre and Rubber Co. of Pak. Ltd. V/s EOBI reported at 1993 PLC-365 and a similar decision under the PESS Ordinance, 1965 reported at NLR 1986 (LAB) Kar. 10 = 1987 CLC-2531. Against these decisions you started as the first step by giving your said illegal notice under the Land Revenue Act in violation of the law and in abuse of the process with malafide intentions to harass and black mail our client amounting to a criminal offence for which you are liable to be prosecuted.

6-                 Our clients have made enquires from other establishments in the Region who have similar complaints against you since your came in the Region and you hurl various threats and even threaten to force to close down the establishments as given by you to our client if they did not tow, follow and accept your illegal demands. It may also be noted that our client made various representation to you continuously vide it’s letters written to you but no heed paid by you.

7-                 We, therefore, call upon you to confirm in writing as under:-


i)                    Stop and discontinue forthwith claiming to be under the Federal Ministry of Labour instead of being a statutory body created under the EOB Act, 1976 to misrepresent, harass, pressure and brow beat the parties including our client.

ii)                   Stop for-with claiming, acting and using as Asst. Collector Grade I under the Land Revenue Act, 1967.

iii)                 Stop harassing, victimizing, and misusing the Act and the law with malafide intentions against various establishments of the Region including our client since your coming and continuing as the Regional Head of the Region.

8-                 If you fail to act as given in the para 7 above, in the alternate please treat this as a Show Cause Notice to you of two weeks that our client would have no option but to apply for permission of your prosecution u/s 38 of the Act for the above acts, misuse of the Act and law to the Federal Government for you above acts giving continuing cause of action till your holding the above post of the Regional Head and prosecute you in the competent court as per the law which please note very carefully.





                                                                                                                                                               (S.M. Yaqoob)

   Advocate Supreme Court


Counter Signed by Client



I-                   Minister of Labour,

Ministry of Labour and Manpower,

Government of Pakistan


II-                The Secretary, Ministry of Labour & Manpower,

Federal Ministry of Labour and Manpower,

Government of Pakistan,  


III-              The Chairman

Employees Old-Age Benefits Institution,
EOBI House, Annexe Building of G.P.O. I.I Chndrigar Road, Near Jang Press,