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: 



By Registered Post



The Chairman

Employee Old-Age Benefits

EOBI House, 4th floor,

Annex Building G.P.O.

I.I. Chundrigar Road,




Sub: Misrepresentation and abuse of the law


Dear Sir,


                        In connection with the above there are two matters to which we would like to draw your attention as explained below for taking appropriate corrective actions.


A)        EOBI not a Govt. department and under the Federal Ministry of Labour


1-                                 The letter heads of the Institution wrongly bear the words, “Under the Ministry of Labour, Government of Pakistan” which is misrepresentation to pressurize, threaten and brow beat the parties as the Institution is a statutory body created by the Employees Old-Age Benefits Act, 1976 like the Provincial Employees Social Security Institutions under the Provincial Employees Social Security Ordinance, 1965 and other such statutory bodies which have their importance as such within their own right. The E.O.B.I. claimed to be a Govt. Dept. under the Federal Labour Ministry and IRO, 1969 was not applicable to it and it went before the Single Bench, NIRC which rejected the claim of the Institution, the mater was taken to the Full Bench, NIRC which upheld the views of Single Bench reported at 1985 PLC – 891, thereafter the same view was taken by the Karachi High reported at 1986 PLC – 899 and finally the Supreme Court upheld the same view reported at 1998 SCMR – 765 which finally settled the matter. In view this you have to:

(a)        Remove the above words from all your letter heads and other documents.

(b)        Remove your name from the pink pages meant for the Federal Govt. in the Telephone Directory or any other such directory. However the name of the Institution in the normal while pages be continued as SESSI and such other statutory bodies.

2-                                 Further more after the 18th amendment of the Constitution abolishing the Concurrent List the subject labour is no longer with the Federal Govt. and has gone to the exclusive jurisdiction of the provinces and the Federal Govt. has no jurisdiction to legislate on labour as held by the Supreme Court in it’s decision dated 02-06-2011 in the Const. Pet. No. 24/2011, Air League PIAC Employees V/s Federation of Pakistan except if one or more Provincial Assemblies pass resolution as per the details given in the Article 144(1) of the Constitution. After the 18th amendment devolution to the provinces of the matters due to omission/abolishing of the Concurrent List has to be completed by 13-06-2011 as provided by the Article 270 AA(8) of the Constitution and thereby the Federal Govt. has nothing to do with the labour which is in exclusive jurisdiction of the provinces. Evenotherwise now containing any such words in letter head or any other document of the Institution is totally illegal and against the Constitution as there can no longer be any Federal Ministry of Labour.


B)        Abuse of the Land Revenue Act, 1967 by the Officials of the Institution


1-                                 Section 13(2) of the EOB Act, 1976 provides due amount may be “recovered as arrear of land revenue” Identical provision is also contained in Section 23(2) of the P.E. Social Security Ordinance, 1965. It may be noted that similar provisions are contained in several other laws and recoveries to be made under the Court orders/decisions but it does not mean that such departments bodies/court themselves have the powers of the Collector under the Land Revenue Act, 1967. All it means that the matter would be referred to the Collector under the Land Revenue Act, 1967 being special law for recovery of the amount as arrear of land revenue using the powers and procedure prescribed under it. It is is a principle of law that when there is a special law on any matter it should be followed as provided by it.     


2-                                                                  This matter went before the Sindh High Court in the case of M/s Exact Private Ltd. reported at 2009 PLC (C.S.) 799 which elaborately held that the officials of SESSI do not have the powers under the Land Revenue Act, 1967 and when the final amount is determined under the procedures/steps provided by the P.E.S.S. Ordinance, 1965 the matter of recovery be referred to the Collector under the Land Revenue Act, 1967 to use elaborate procedure provided by chapter VIII of the Land Revenue Act, 1967. Since as mentioned above the provision in the EOB Act, 1976 and P.E. Social Security Ordinance, 1965 are identical this decision of the High Court fully applies of the EOB Act, 1976. The officials of EOBI and the Provincial Social Security Institutions have managed to get them notified as collector Grade-I under the Land Revenue Act, 1967. In view of the said decision of the High Court all such notifications are invalid, and illegal. The officials of these Institutions misuse and abuse the Land Revenue Act, 1967 to harass and blackmail employers with malafide intentions. We expect that decision of the High Court shall be followed in it’s letter and spirit and both the Institutions would stop forthwith notice and use threat of the action under the Land Revenue Act, 1967. However when amount of arrears of contribution is finally determined after exhausting the procedure / steps provided by both the laws, the same may be refereed to the Collector under the Land Revenue Act, 1967 for recovery of the same as per the law.     

                                    We earnestly hope that prompt actions shall be taken on both the above matters.


Thanking you,

                                                                                                                                     Your’s faithfully,




                                                                                                                                For M/s S.M. Yaqoob

CC to:

1-                 The Secretary,

Federal Ministry of Labour, Manpower and

Overseas Pakistanis,

Government of Pakistan,


2-                 The Provincial Secretaries of Labour,

Governments of the Provinces.