NATIONAL BANK OF PAKISTAN through President, Karachi vs MUHAMMAD SHAFIQ art — 2025 SCMR 1706 SUPREME-COURT

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NATIONAL BANK OF PAKISTAN through President, Karachi VS MUHAMMAD SHAFIQ art. 185(3)---Employment---Bank employees---Termination from service---Master and servant relationship---Principle---Civil suit seeking reinstatement, filing of---Employees were reinstated by trial court and such decision was upheld by revisional court (High Court)---Could the trial court order for reinstatement in service or it could ordinarily entertain suit for damages merely as per the principle of master and servant?---Whether the basic principle of master and servant still fits in the present day and age or it requires re-evaluation?---The main legal issue concerned the long-standing principle that in master and servant (contractual employment) relationships, courts could not order reinstatement and instead only damages could be awarded---The petitioner bank relied on the precedent set in the case reported as 'PLD 1961 SC 531', however, the Supreme Court questioned as to whether this precedent being 65 years old remains relevant in the modern context and would continue to be fit for purpose?---For a number of reasons, this was a question which required consideration by the Supreme Court before granting leave to appeal---Given the modern age of internet and even in relation to what was called the "gig economy" (where the position of the hired/engaged person was at its most precious) the courts in many jurisdiction have held that the relationship could not be reduced to that of master and servant---Even the ancient concept as set out in traditionalist terms and certainly as appeared to be in the mind of the court in 'PLD 1961 SC 531' appeared to be outmoded---It appeared that the law might have ossified and became outmoded, being no longer congruent with the demands and requirements of modern times---Rule laid down in 'PLD 1961 SC 531' was ultimately of an equitable nature and it was of the essence of equity that it must retain flexibility and the discretion of the Court (in the judicial sense) so that the law could appropriately develop, and continue to develop, with the passage of time---The rule at hand had prima facie (barring a few developments, which do not however address the issue at the most fundamental level) now acquired a rigidity that was a negation of the discretion that was the hallmark of equity, and became little more than a self-denying ordinance that barred the healthy and organic development of the law so that it remained fit for purpose and the modern age---In the context of the modern economy, the termination of service, in particular by a large corporation, may well in practical terms make a person effectively unemployable even if the termination is later found to be unlawful by a court and compensated by an award of damages---In such circumstances, the decree, when (and if) ultimately honored, may well be cold comfort only---Supreme Court emphasized that it was now long overdue that matters be reappraised at a fundamental level and even, perhaps on the basis of recourse to first principles---accordingly, leave to appeal was granted to, inter alia, consider the question as to "Whether the rule laid down by this Court in the case reported as PLD 1961 SC 531, and others that follow and/or lay down or affirm the same or similar principle are, and continue to be, fit for purpose or require any modification, replacement or substitution and if so, in what manner and to what extent?

NATIONAL BANK OF PAKISTAN through President, Karachi vs MUHAMMAD SHAFIQ art — 2025 SCMR 1706 SUPREME-COURT

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