Legal dispute over allotment of housing units to workers

PESHAWAR: A legal dispute has arisen over the allotment of houses and flats of the Workers Welfare Fund on the basis of ownership.

The PTI government has initiated the allotment of housing units by formulating a policy without amending the 1971 Workers Welfare Fund Ordinance.

The Supreme Court had struck down the PPP government decision in 2006 and again issued a restraining order on an application against allotment of housing units on an ownership basis in 2017. Prime Minister Imran Khan has recently inaugurated two projects of the Fund in Islamabad and Peshawar.

During the first phase, at least 3,564 families will be allotted the housing units on the basis of ownership in both the cities.

The government has initiated the process of allotting 1,008 flats and 500 houses in Islamabad in the first phase while 2,056 family flats will be allotted through balloting in Peshawar. The other projects in various cities are nearing completion, which will be allotted to the workers on property rights.

When contacted, leading Supreme Court lawyer Syed Haziq Ali Shah, who is familiar with the Fund affairs, said that the Workers Welfare Fund Ordinance 1971 did not include any provision for allotment of houses to workers on the basis of ownership and, therefore, the law did not allow it. He said a case in this regard was already sub judice in the Supreme Court and the court had suspended a similar ownership order passed by the Peshawar High Court, so the government should have waited for the court’s final decision. “After the court decision, if the government wants it may bring some kind of legislation to address the issue.

“Till the Supreme Court finally decides the matter regarding allotment of houses on ownership or otherwise, any action regarding allotment of houses on the ownership basis would be a premature step”, he said

Syed Haziq said that according to the Act, the houses and flats are allotted on very meager rents to industrial workers for accommodation purposes and the same house is allotted to another employee on retirement or leaving a job. He said that industrialists deposit five per cent and employees deposit two per cent with the Workers Welfare Fund, while the government has no contributions except for the initial contributions made at the time of the start of the fund.

Workers Welfare Fund Secretary Intikhab Alam Khan told the scribe that the 1971 Ordinance does not impose any restriction on allotment of houses on the ownership basis and the government has decided to allot houses to the workers under the new policy. However, regarding the decision of the Supreme Court, he said that he was not aware of these

decisions.

An official of the Workers Welfare Board said on condition of anonymity that wherever houses and flats are being constructed, they have nothing to do with the new Pakistan Housing Scheme and the prime minister may have been kept unaware of legal matters.

The PTI government had issued Workers Welfare Fund Housing Allotment Policy 2020 through S.R.O 260(1)2021 on Feb 25, 2021, with the federal cabinet’s approval. According to the criteria laid down for the allotment, the housing units shall be allotted on an ownership basis subject to eligibility and payment according to criteria laid down in the policy.

The PPP government had amended the 1971 Ordinance through the Finance Bill in July 2006 to dispose of moveable and immoveable property of the workers fund and board but the Supreme Court overturned the government’s decision. The court had ruled that the houses and flats of the Workers Welfare Board were allotted to provide accommodation to the workers but they could not be sold or leased.

However, later on, former Chief Justice of Peshawar High Court Waqar Ahmed Seth in a writ petition No 1043 had once again issued orders for the allotment of housing units on property rights.

However, the Supreme Court had once again issued a restraining order on the civil petition of the KP Workers Welfare Board and some industrialists against the orders of the Peshawar High Court. Due to which the workers could not be allotted the ownership rights of the houses and flats of the Workers Welfare Board.

Justice Mushir Alam and Justice Qazi Faez Isa in a Civil Petition No 2469 of 2017 against the judgment dated 17.05.2027 by the Peshawar High Court had granted leave. The Supreme Court had ordered that It is, inter alia, contended that through the impugned judgment the Peshawar High Court directed the petitioner to disinvest the residential quarters built by the petitioner for the welfare of the labourers throughout the province of Khyber Pakhtunkhwa on the strength of Section 10 (ca) which inter alia provides: - “52(ca) to dispose of the moveable and immoveable Property to Workers’ Welfare Fund and Workers’ Welfare Boards.

The court had further urged that the clause noted above inserted through Finance Act, 2006 on July 1, 2006, along with other inserted provisions through Finance Act were struck down being ultra vires. It is stated that such a judgment was brought to the notice of the High Court but was not considered.

“It is further urged that labour colonies are constructed for the workers to house and facilitate the labourers as long as they continue to work in the industrial unit, the purpose is to accommodate labourers not to disinvest and lease out such property to the laborers. The impugned judgment is against the law declared by this court. The point noted above needs consideration leave is accordingly granted”, the Supreme Court had ordered.