HYDERABAD, Oct 11: Justice Anwar Zaheer Jamali of the Sindh High Court, Hyderabad circuit bench, on Tuesday directed the Sindh government to pay 10 per cent mark-up per annum to each heir of 12 deceased employees of the defunct SRTC over Rs30,000 within two months to put an end to prolonged proceedings.

The order was passed on 12-identical petitions, filed by the Sindh government through the chairman defunct SRTC.

Sindh’s additional advocate-general Masood A. Noorani represented the Sindh government in 12-petitions, praying the court to set aside the order of the commissioner workmen’s compensation and authority under the Payment of Wages Act, allowing payment of Rs100,000 as group insurance to each employee of the SRTC without discussing each issue separately on June 30.

The AAG in his petition said the respondent had no jurisdiction to hear cases of the SRTC employees because including officers of the SRTC in higher grade were civil servants under section 3-E of the Sindh Services Tribunals Act and Provisions of Sindh Civil Servant Act 1973 were not attracted in the cases whereby employee of any corporation, controlled or established by the government were deemed to be civil servants for purpose of availing remedy before the tribunals.

He submitted that the order showed that trial court had deviated from mandatory provisions of law and did not properly discuss the issues nor served notices on petitioners and without hearing them and recording evidence passed the judgement in violation of principles of natural justice.

Mr Noorani contended that the main issue of jurisdiction to try the cases was not properly discussed and had been erroneously decided against verdicts of the Supreme Court on same points.

He said that even a plan reading of section 3-E read with Section 2(AA) of the Sindh Services Tribunal Act, it became quite clear that civil servant meant every employee working in a corporation.

He said that under the Industrial Relations Ordinance 2002, Sindh Labour Appellate Tribunal was done away with.

He said in any case the order dated June 30,2000 was without jurisdiction.

He prayed the court to declare deceased SRTC employees as civil servants and subject to provisions of section 3-E of Sindh Services Tribunal Act 1973 and also declare impugned order as of no legal effect.

The AAG drew attention of the court to the report of committee, constituted by the court to resolve the matter of employees.

The committee was headed by the AAG with Yousuf Leghari advocate as nominee of deceased employees and a representative from the accountant general, Sindh office.

The report said the group insurance or death compensation was payable in the event of natural death during service.

The employer is required to get employees insured and amount of payable group insurance by the SRTC was Rs30,000.

Besides, the SRTC had been making payments to its employees through insurance company at the rate of Rs30,000.

The SRTC followed the policy till 1994-95 but the State Life Insurance Company terminated the policy in 1998 for non-payment of regular premium due to financial crisis and thereafter legal heirs of deceased employees did not lodge claims of group insurance either with insurance corporation or with defunct SRTC.

“Mostly cases were filed before the commissioner workmen’s compensation and authority after closure of the SRTC operation and it appeared that claims were not properly decided but looking to humanitarian factor the claimants could be awarded Rs30,000 payable by insurance company in view of circular agreement and on-ward confirmation of the Sindh governor with a concrete decision that no further claim of group insurance of any sort shall be borne by government of Sindh and insurance company to be quoted as precedent”, the report read.

The AAG said the petitioner of the SRTC was willing to pay Rs30,000 to each legal heir of deceased employees, who are party in petitions.

The counsel of legal heirs, Mr Yousuf Leghari, reluctantly agreed to the proposal to bring an end to these prolonged proceedings which resulted in miseries and inconvenience to legal heirs.

He submitted that on sum of Rs30,000 mark-up would also be allowed at a reasonable rate form the date of death, till the actual payment was made to them.

The court agreed with his contention saying it was just, equitable and fair.

Mr Justice Anwar Zaheer Jamali ordered petitions are disposed of in terms that legal heirs of deceased employees of the SRTC, who are party to these petitions, would be entitled to receive Rs30,000 towards group insurance claim of deceased from petitioners, which shall be paid to them within two months.

He said that in addition to it, in each case legal heirs of deceased would also be entitled for payment of mark-up at the rate of 10 per cent per annum over such sum of Rs30,000 from date of death of deceased till actual date of payment.