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Official Citation: 2025 LHC 3999
Court / Jurisdiction: Lahore High Court
Year of Decision: 2025
Decision Date: 2025-06-16
Parties: Province of the Punjab through its Chief Secretary etc vs Chand Iqbal etc
Ruling Summary: This decision was rendered by the Lahore High Court on 2025-06-16, officially reported as 2025 LHC 3999. In this matter between Province of the Punjab through its Chief Secretary etc and Chand Iqbal etc, the court adjudicated key questions of statutory construction, procedural regularity, and legal precedent under Pakistani law.
Core Holding: The honorable bench evaluated governing statutory provisions and judicial authorities to establish the rights of the parties, delivering the binding reasoning set out below.
Case cited as 2025LHC3999
Court Name: Lahore High Court Judge(s): Ch. Muhammad Iqbal, Malik Waqar Haider Awan Title: Province of the Punjab through its Chief Secretary etc vs Chand Iqbal etc Case No.: I.C.A. No.13336/2022 Date of Judgment:2025-06-16 Reported As: 2025 LHC 3999 Result: Appeal Allowed
JUDGMENT
JUDGMENT Ch. Muhammad Iqbal, J:- Through this single judgment, we intend to decide the titled Intra Court Appeal [No.13336/2022] as well as the connected appeals/writ petitions mentioned in Appendix annexed with this judgment as common questions of law and facts are involved in these cases. 2. Brief facts of these cases are that the respondents filed Writ Petitions and contended that Punjab Public Service Commission [hereinafter referred as "Commission"] invited applications through press for appointment against vacant posts of Deputy Accountant (BS-16). The respondents applied for the said post and after test and interview the names of successful candidates including name of respondent were recommended for appointment on the said posts. On recommendation of the Commission, the Chief Inspector of Treasuries and Accounts, Government of the Punjab issued appointment/offer letters to the respondents who accordingly assumed the charge of the post and started performing their official duties. On the secret source of information recorded through Rapt No.4 dated 02.01.2021 the Anti-Corruption Establishment conducted raid on 03.01.2021 and apprehended employees of PPSC involved in leakage of 12 papers and used un-favour means in the exam and also registered Criminal Case F.I.R No.1/21 under Section 409, 161 & 166 PPC and 5/2/47 ACE and said Agency (ACE) conducted inquiry and finally fixed liability. On the basis of finding / report of the said Investigator, the Commission vide letter No.ESII-1/2019-PPSC/405 dated 07.04.2021 withdrew the result of tests/interviews as well as recommendations for the aforesaid post and in pursuance of the said letter, the Chief Inspector of the Treasuries & Accounts, Government of the Punjab, Finance Department terminated the service of respondents vide orders dated 09.04.2021. Being dejected, the respondents assailed the termination orders dated 09.04.2021
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through different Writ Petitions. For ready reference, prayer made in one of the writ petitions [W.P.No.26833/2021] is reproduced as under: "Under the above, circumstances it is, therefore, most respectfully prayed:- A. To declare that action of respondents is transgression of authority having no legal effect and termination orders are nullity in the eyes of law and liable to be dismissed. B. To declare that after issuing of appointment orders followed by joining report and drawl of salary continuously till 31st March 2021 services of the petitioners are governed by Punjab Civil Servants Act 1974 and Punjab Civil Servants (Appointment & Conditions of Service) Rules 1974, therefore, their services cannot be terminated on the directions of Punjab Public Service Commission. It is further prayed that the operation of impugned termination order dated 09.04.2021 passed by respondent No.3 may very kindly be suspended and the petitioners may very kindly be allowed to continue their services at their present position/place of posting and respondents No.2 & 3 may very kindly be directed to release monthly salaries of the petitioners without any delay till the final disposal of instant writ petition." The said Writ Petition was contested by the appellant through filing report and parawise comments by raising therein the preliminary objection of maintainability and also defended the petition on legal and factual parlances. The learned Single Judge in Chamber allowed the writ petitions of the respondents vide judgment dated 14.07.2021. Against the said judgment, the appellants filed Civil Petitions [No.39-L, 76-L to 83-L of 2022 and 127-L of 2022] titled as Province of the Punjab through its Chief Secretary, Govt. of the Punjab, Lahore etc. Vs. Chand Iqbal etc. before the Hon'ble Supreme Court of Pakistan and the Hon'ble Apex Court vide order dated 03.02.2022, remitted the matter to this Court with the following observation: "Having heard the learned counsel for the parties, it appears that an intra court appeal in the matter is competent. With the consent of the parties, the matter is remanded to the High Court with a direction to Registrar of the High Court to place the same before the Hon'ble Chief Justice of the said Court for fixation of this matter before an appropriate Division Bench of the said Court by treating this petition as an intra court appeal. The said bench shall hear both sides and decide the same in accordance with law." Hence, these appeals. The instant appeal was listed before this Bench on 25.02.2025 and the learned Law Officer obtained adjournment to prepare his case and case was fixed on 26.02.2025 but learned counsel for the respondent was not available and on 05.03.2025 the law Officer was not available due to his indisposition thus finally parties advanced their arguments on 13th & 20th May, 2025. 3. Arguments heard. Record perused. 4. Admittedly, through advertisement in newspaper the Commission invited applications for the post of Deputy Accountant (BS-16). The respondents were selected and recommended for the said posts. Upon recommendations of the Commission, the Chief Inspector of Treasuries & Accounts, Government of the Punjab issued offer/appointment letters to the respondents. In the said letter the appellant made offer to the respondents regarding the post for temporary appointment with the initial period of probation of two years, which posts are likely to be permanent later on. As per Clause III & IV of the appointment/offer letter, the appointing authority has jurisdiction to terminate its newly appointed employee/ respondents without assigning any reason or serving any show cause notice during the period of probation. For ready reference, appointment letter of one of the respondents is reproduced as under: "To CHAND IQBAL D/o MUHAMMAD IQBAL House No. 245, Street No.7, Mohallah Khokhar Town, Lahore.
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Subject: OFFER OF APPOINTMENT AGAINST A POST OF DEPUTY ACCOUNTANT (BS-16) IN PUNJAB TREASURIES AND ACCOUNTS SERVICE (CATEGORY-WOMEN QUOTA) On the recommendations of the Punjab Public Service Commission, you are, hereby, offered a temporary appointment against a post of Deputy Accountant in BS-16, in the Treasuries/District Accounts Offices on the following terms and conditions:- i. Your appointment to the service will be on a temporary basis likely to be permanent, regulated by the Punjab Treasuries & Accounts Service Rules, 2006 (as amended up-to-date) subject to such other rules and orders issued by the Government of the Punjab from time to time for the category of civil servant to which you will belong. ii. The appointment is subject to verification and confirmation of your academic record and testimonials (at your own expenses) from the concerned board/university, which you will have to submit within 30 days after joining. If any of your document(s) are subsequently found to be fake or tempered with or contain any defect or shortcoming, your appointment shall stand cancelled ab-initio and you shall be liable to refund all amount received from the government in addition to such other action as may be taken against you. iii. You will remain on probation for two years, extendable for another two year if not terminated by the Competent Authority. However, on successful completion of period of probation, your service will be considered for confirmation. iv. Your services are liable to termination without assigning any reason or serving any notice during the period of probation. v. You shall be liable to serve anywhere in the Punjab during service. vi. In case you wish to resign at any time from service, one month's notice shall be necessary or in lieu thereof one month's pay shall be deposited by you in cash into Government Treasury. vii. You will have to join at the place for duty at your own expenses and no TA/DA shall be paid for any journey in this connection. 2. If you are willing to accept this appointment on the above terms and conditionals, you should report in the District Accounts Office, Gujranwala within fourteen (14) days from the date of issuance of this communication, falling which this offer shall stand cancelled. (ISSUED BY THE ORDERS OF) CHIEF INSPECTOR OF TREASURIES & ACCOUNTS (APPOINTING AUTHORITY)" (emphasis supplied) During investigation, one of the candidates, Gulzar Khan, admitted before the Anti-Corruption Establishment that he passed the written examination of Deputy Accountant (BS-16) through Roll No.22018 after paying Rs.250,000/- to one Usman and he also deposed that said Usman had sold these papers to many other candidates including his real brother Arshad Ahmad [Roll No.20733] who has also passed the examination and is working in District Accounts Office, Jhang. The Anti- Corruption Establishment conducted a thorough investigation and found that the question paper for the post of Deputy Account was leaked and submitted report to the Commission. An FIR No.1/2021 dated 02.01.2021 of the said occurrence was registered under Section 161/162/164/165/166/409 PPC read with Section 5/2/47 of PCA at Police Station Anti-Corruption Establishment, Lahore. On this information/inquiry, the Director General, Anti-Corruption Establishment, Punjab requested the Chief Secretary, Punjab for cancellation of examinations. For ready reference, relevant portion of note dated 23.01.2021 is reproduced as under: "5. On the basis of role of different culprits, evidence gathered during investigation so far and perusal of WhatsApp groups chat history of the culprits candidates for the posts, it is recommended that the examinations conducted by the PPSC against the posts mentioned in
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Annex-B, where candidates have not joined their duties, may be cancelled. It is also recommended that a reference may be sent to the Finance Department for the post of Deputy Accountant BS-16 for taking necessary action as the recruitment process has been completed and candidates have joined their duties." The Chief Secretary, Punjab approved the recommendations of the Anti-Corruption Establishment and forwarded the matter to the Commission. The Full Board of the Commission examined the said report and by invoking its power under Regulation 63 of the Punjab Public Service Commission Regulations-2016, issued Press Release dated 28.01.2021. The Press Release dated 28.01.2021 issued the Commission is also reproduced as under: "PUNJAB PUBLIC SERVICE COMMISSION, LAHORE PRESS RELEASE The Punjab Public Service Commission (PPSC), taking cognizance of the leakage of question papers as highlighted by the Anticorruption Establishment (ACE), after due deliberations, for maintaining transparency, and meritocracy has put on hold the recruitment/appointment process of the following posts: I. Deputy Accountant (BS-16) Finance Department II. Lecturer Education (BS-17), Higher Education Department III. Lecturer Physical Education (BS-17), Higher Education Department IV. Lecturer Physics (BS-17), Higher Education Department V. Lecturer Chemistry (BS-17), Higher Education Department VI. Lecturer Economics (BS-17), Higher Education Department VII. Lecturer History (BS-17), Higher Education Department VIII. Lecturer Biology (BS-17), Higher Education Department IX. Assistant Director (Investigation) (BS-17), Anticorruption Establishment Punjab. X. Inspector (BS-16), Anticorruption Establishment Punjab. XI. Assistant (BS-16), Punjab Police Department. XII. Zilladar (BS-14), Punjab Irrigation Department. 2. The matter shall be reviewed by the Punjab Public Service Commission as per its mandate, given in Regulation No.63 of PPSC's Regulations-2016. Further action after revision/rectification shall be taken in due course. 3. PPSC reiterates its resolve to protect and uphold the dignity of this 84 years old pioneer entity which has been serving the Punjab Province through a fair, merit based and transparent process to promote excellence, professionalism and competence. (Muhammad Nawaz Khaild Arbi) Secretary No.PPSC/Exam/2021/12" (emphasis supplied) The meeting of Full Commission was held on 28.01.2021 and the matter was placed before Full Commission which vide letter dated 07.04.2021 addressed to the Additional Chief Secretary, Punjab and Finance Secretary, Government of the Punjab, declared that for fair play and transparency, the recommendation for the appointment of respondents are withdrawn. For ready reference, letter dated 07.04.2021 issued by the Commission is reproduced as under: "To, The Additional Chief Secretary, Government of the Punjab, S&GAD, Lahore. 2. The Finance Secretary, Government of Punjab, Lahore.
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Subject: WITHHOLDING THE PROCESS OF RECRUITMENT/ APPOINTMENT Kindly refer to the subject cited above and also this Commission's letters No. Estt-I/2019-PPSC/112 & No. Estt-I/2019-PPSC/113, dated 28-01-2021. 2. It is stated that a meeting was held at 9-Aikman, GOR-I on 25-01-2021 at 03:30 pm under the convenership of Chief Secretary Punjab, which was attended by the followings:- Chief Secretary, Punjab Additional Chief Secretary, Punjab Chairman PPSC Secretary I&C, S&GAD Secretary Regulations, S&GAD Secretary, Law & Parliamentary Affairs Department Secretary, PPSC D.G Anti-Corruption Establishment (ACE) Punjab 3. During the meeting, the Director General Anti Corruption Establishment submitted that they had apprehended four persons (02 from PPSC and 02 private persons) and found, after investigation that they were involved in leakage of papers, the exam for which had been conduct by the PPSC for the following posts:- i. Deputy Accountant (BS-16), Finance Department ii. Lecturer Education (BS-17), Higher Education Department iii. Lecturer Physical Education (BS-17), Higher Education Department iv. Lecturer Physics (BS-17), Higher Education Department v. Lecturer Chemistry (BS-17), Higher Education Department vi. Lecturer Economics (BS-17), Higher Education Department vii. Lecturer History (BS-17), Higher Education Department viii. Lecturer Biology (BS-17), Higher Education Department ix. Assistant Director (Investigation) (BS-17) Anti-Corruption Estt. (ACE) x. Inspector (BS-16), Anti-Corruption Establishment (ACE) Punjab xi. Assistant (BS-16), Punjab Police Department xii. Zilladar (BS-14), Punjab Irrigation Department All participants unanimously condemned leakage of papers, and took a resolve to restore fair play, meritocracy and transparency, the earlier hall mark of PPSC, and put in all possible measures to thwart recurrence of such an incident in future. During the meeting, the Secretary Regulations, S&GAD, opined referring, inter alia, to regulations No.63 of PPSC's Regulations-2016 that 'If any error or omission is detected in the eligibility of a candidate or result or merit list at any stage even after its dispatch to the department concerned, the recommendation(s) made on the basis of such a mistake/error shall be withdrawn for review by the Commission and duly rectified. 4. Subsequent to the meeting, an investigation report, in form of a "Note', initiated by the DG ACE for Chief Secretary was marked down to the Chairman PPSC after passing through the hand of Additional Chief Secretary, Secretary IBC, Secretary Regulations (S&GAD) and Secretary Law & Parliamentary Affairs Department, giving complete detail of the investigation by ACE with its proposal. 5. On receipt of the ACE's report, a meeting of the Full Commission was convened by the Chairman PPSC on 28-01 2021, at 10:00 am, to examine and discuss the situation arising out of leakage of papers, and decide unanimously, the future course of action. After thorough discussion and debate on how to go ahead with the leaked papers, the following decisions were taken: (A) The interview/recruitment process against the following posts be put on hold and matter be reviewed in line with the Regulation No.63 of PPSC's Regulations-2016: i. Lecturer Education (BS-17), Higher Education Department
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ii. Lecturer Physical Education (BS-17), Higher Education Department iii. Lecturer Physics (BS-17), Higher Education Department iv. Lecturer Chemistry (BS-17), Higher Education Department v. Lecturer Economics (BS-17), Higher Education Department vi. Lecture History (BS-17), Higher Education Department vii. Lecturer Biology (BS-17), Higher Education Department viii. Assistant (BS-16), Punjab Police Department ix. Ziladar (BS-14), Punjab Irrigation Department (B). The Secretary Irrigation and D.G. ACE be requested to put the appointment process for the following posts on hold as the PPSC is initiating a process of reviewing the recruitment on report of D.G ACE: i. Zilladar (BS-14) ii. Assistant Director (BS-17) iii. Inspector (BS-16) (C). A letter be written to Secretary Finance requesting him to hold in abeyance the appointment process of the Deputy Accountant (BS-16) whose requisition was sent vide letter dated 09-09-2020 because the PPSC wanted to review its recommendations in pursuance of the recommendations of the ACE while exercising its power under Regulation No.63 of Regulations-2016. 6. In pursuance of the above decisions, letters, dated 28-01 2021, were written accordingly to the Additional Chief Secretary and Finance Secretary; whereas, a Press Release, for general Information of the candidates/public was also issued. 7. The Punjab Public Service Commission had since been waiting for receipt of any more information from ACE to address the matter holistically in one go; however, no subsequent report/material was received from the ACE except a report about incrimination of 04 employees of PPSC. 8. The final meeting of the Full Commission of PPSC was held on 17-03-2021 at 11:30 am, for review of the decision taken on 28-01-2021 about putting on hold the recruitment/appointment process against above said 12 papers/posts, After detailed discussion on the report submitted by the Anti- Corruption Establishment Punjab, in form of a 'Note for Chief Secretary along with annexure, the Full Commission observed that the Anti-Corruption Establishment and the corroborating circumstances, endorsed by the internal probe at PPSC level, established the leakage of papers against 12 posts, and keeping these papers intact would tantamount to compromising the fair play, meritocracy and transparency of the Punjab Public Service Commission, therefore, giving due consideration to Regulation No.63 of PPSC's Regulations-2016, the Full Commission of PPSC unanimously decided as under:- (a) withdraw, for all intents and purposes the papers/tests/selection processes, completed/under going, against the following posts:- i. Deputy Accountant (BS-16), Finance Department ii. Lecturer Education (BS-17), Higher Education Department iii. Lecturer Physical Education (BS-17), Higher Education Department iv. Lecturer Physics (BS-17), Higher Education Department v. Lecturer Chemistry (BS-17), Higher Education Department vi. Lecturer Economics (BS-17), Higher Education Department vii. Lecture History (BS-17), Higher Education Department viii. Lecturer Biology (BS-17), Higher Education Department ix. Assistant Director (Investigation) (BS-17), Anticorruption Establishment Punjab x. Inspector (BS-16), Anticorruption Establishment Punjab
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xi. Assistant (BS-16), Punjab Police Department xii. Zilladar (BS-14), Punjab Irrigation Department (emphasis supplied) (b). The tests/papers against the above posts shall be conducted afresh in due course of time, of the existing candidates only. (c). No fresh advertisement shall be given for recruitment against these posts, and the existing candidates against these posts shall not be required to either again remit admission fee or submit online admission forms. 9. In view of the foregoing, the decision of the Full Commission of Punjab Public Service Commission, taken on 17-03-2021, is conveyed accordingly. (MUHAMMAD NAWAZ KHALID ARBI) SECRETARY" (emphasis supplied) 5. Even otherwise, Section 10 (1)(i) of the Punjab Civil Servants Act, 1974 empowers to the government to terminate the services of an employee during probation period even without serving any notice. For ready reference, aforesaid provision is reproduced as under: "10. Termination of service (1) The service of a civil servant may be terminated without notice- (i) During the initial or extended period of his probation: Provided that, where such civil servant is appointed by promotion on probation or, as the case may be, is transferred and promoted on probation from one service cadre or post to another service, cadre or post his service shall not be terminated so long as he holds a lien against his former post, service or cadre, and he shall be reverted to his former service, or as the case may be, cadre or post;" (emphasis supplied) As per the provision reproduced above, the termination order of the respondents was issued without any stigma. For ready reference, termination order dated 09.04.2021 of one of the respondents is reproduced as under: "ORDER IT(FD)(ESTT-II)10-1/2020(New Recruitments) in pursuance to the letter of Punjab Public Service Commission bearing No Estt-I/2019-PPSC/405, dated 07-04-2021, wherein PPSC has withdrawn for all intents and purposes, the paper/test/selection process, completed against the post of Deputy Accountant (BS-16), Finance Department, the services of Chand Iqbal D/O Muhammad Iqbal, recruited as Deputy Accountant (BS-16) vide this Inspectorate orders bearing No. IT-FD(Estt-II)10-1/2020(PF-183) dated 01-12-2020 are, hereby, terminated with immediate effect. 2. Punjab Public Service Commission has further conveyed that the test/paper against the said post shall be conducted afresh in due course of time of the existing candidates only and no fresh advertisement shall be given for recruitment against this post and the existing candidates shall not be required to either again remit admission fee or submit on-line admission form.CHIEF INSPECTOR OF TREASURIES & ACCOUNTS, PUNJAB" 6. The appellants have failed to bring on record any grudge or malice against the respondents nor proved the same. The services of the appellants/probationers could be terminated without notice during initial or extended period of probation. Where no stigma of misconduct including inefficiency or corruption was attached, same would be a case of termination simpliciter thus, question of any prior show cause notice would not arise.[1] 7. Further, in the impugned judgment, the learned Single Judge in Chamber himself held that principle of locus poenitentiae is applicable and the Commission has jurisdiction under Regulation 26 and 63 of the Regulations-2016 to withdraw the recommendations as the Commission does not become functus officio. For ready reference, the relevant portion of impugned judgment is reproduced as under:
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"11..... However, in this Court's opinion, PPSC does not become functus officio, in its stricto sensu, after sending the recommendations for appointment, because Regulations 26 and 63 allow withdrawal of recommendations. Both the regulations are neither read down nor held ultra vires in any of the judgments noted above. Nevertheless, after decisive step of appointment on the recommendations a right is created. Even the right, so created, is not absolute. Principle of locus poenitentiae is found embedded in Section 21 of the General Clauses Act, 1897, which authorizes an authority to amend, add, vary or rescind its order, notification etc. Locus poenitentiae means; "an opportunity to withdraw from a contract or obligation before it is completed" [Merriam Webster Dictionary]. The decisive step, in view of locus poenitentiae principle, would not allow to retain the benefit, if the order, notification or recommendation, so passed, was illegal, void or without lawful authority, as is held in judgment Higher Education, Punjab Civil Secretariat Lahore and others v Muhammad Imran and others (2019 SCMR 643). Relevant portion is reproduced:- "10. Keeping in view the above deliberation, it is noted that there is a judicial consensus on the issues in hand in terms that; I) The Authority which can pass order is entitled to vary, amend, add to or to rescind the same under section 21 of the General Clauses Act, 1897. II) The jurisdiction to recall an earlier order is based on the principle of locus poenitentiae. III) There is an exception to the principle of locus poenitentiae vesting power in an authority to recall its earlier order: if in pursuance of the order passed by the authority, an aggrieved person takes decisive steps, and changes his position. IV) None can retain the benefits of a withdrawn order, claiming the protection of having taken a decisive step, when the very order passed by the authority is illegal, void or without…
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