NIRC has Exclusive Jurisdiction over Trans-Provincial Matters, subject to Conclusive Proof of an entity’s Trans-Provincial Status --- Lahore High Court, Lahore
Islamabad 24-12-2024: The Lahore High Court, Multan Bench, has dismissed a constitutional petition filed by Punjab College, Multan, challenging the jurisdiction of the Commissioner Wages Court under the Payment of Wages Act, 1936. The college had sought rejection of a claim for withheld wages filed by an employee, arguing that the Wages Court lacked jurisdiction as the institution is a trans-provincial organization governed by the National Industrial Relations Commission (NIRC) under the Industrial Relations Act, 2012.
The case arose when a former employee of Punjab College, Mushtaq Ahmad, filed a claim for Rs. 1,041,000 in unpaid wages along with compensation for unlawful deductions. The Wages Court, constituted under the Payment of Wages Act, 1936, took up the matter. The petitioner argued that being a trans-provincial institution, such claims fell exclusively within the jurisdiction of the NIRC. The claim was initially contested on general grounds, but the plea of trans-provincial status was raised only at the final stage of proceedings.
Mr. Justice Muzamil Akhtar Shabir rejected the plea, emphasizing that jurisdictional objections could be raised at any stage, provided they are supported by conclusive evidence. However, the Court noted that Punjab College failed to produce sufficient evidence to establish its claim as a trans-provincial organization. It observed that:
- The petitioner’s relationship with the parent company, Educational Excellence Limited, was not conclusively proven.
- Employment and disciplinary records showed that the respondent was engaged and managed directly by Punjab College, Multan, not the alleged trans-provincial parent company.
The Court held that jurisdictional claims must be supported by undisputed facts or evidence. Since Punjab College failed to substantiate its claim of trans-provincial status, the Wages Court’s jurisdiction was upheld. The petition was dismissed, with the Court noting that the observations made were tentative and not binding on other Courts or authorities.
This decision reaffirms the principle that jurisdictional challenges must be substantiated with clear evidence. It also underscores the exclusive jurisdiction of the NIRC over trans-provincial matters, subject to conclusive proof of an entity’s trans-provincial status.
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