SHC suspends operation of PM order for SSGC MD removal

May 14, 2013 Off By Web Desk

Karachi: The Sindh High Court SHC on Tuesday suspended the operation of Prime Minister’s order to remove the managing director of Sui Southern Gas Company SSGC till further orders.

A division bench headed by Justice Maqbool Baqar also issued notice to the respondents as well as deputy attorney general.

The petitioner Sui Southern Gas Company SSGC through it official Muhammad Arif Latif cited Prime Minister of Pakistan through his principal secretary and ministry of petroleum and natural resources as respondents.

Petitioner through his counsel Anwar Mansoor Khan submitted that chief executive of the company, who was appointed by its board of directors as a managing director of the company has been removed from his position through order purportedly passed by prime minister on February 28, 2013. Though, he contended that the said order was illegal, incompetent and unauthorized.

He referred to the rules and regulations of the company, whereby article 90 specifies circumstances under which managing director or chief executive of the company holds the charge of office or can be removed. However, he said that such law has been repealed and now under section 202 of the Companies Ordinance 1984 is applicable to appointment or removal of managing director, which according to petitioner a chief executive of the company can be removed before expiration of his term after a resolution passed by ¾ of the total number of directors of the company.

He stated that director of the SSGC passed a resolution dated February 28, 2013 whereby they awarded a service contract to its managing director for a period of one year and eleven months from date of his retirement which is March 13, 2013. The petitioner said that the period of service of the managing director of the company is to expire on March 11, 2015, adding managing director of SSGC could not be removed.

He said that action of removing him from service is unlawful and without jurisdiction and such has been done without any show cause notice. He further contended that there is no law under which prime minister or federal government can control the service of managing director of the SSGC.

The court ruled that the operation of the impugned order shall remain suspended till May 27.