Landmark Lahore High Court Judgment on Prime Minister Assistance Package: LESCO Directed to Release Sanctioned Financial Assistance
Lahore High Court | Justice Shujaat Ali Khan | W.P. No. 3940/2023 & W.P. No. 6146/2023
Introduction
In a significant judgment safeguarding the financial rights of bereaved families of deceased government employees, the Lahore High Court has ruled that financial assistance duly sanctioned under the Prime Minister Assistance Package cannot be withheld on the basis of a subsequent discontinuation of the policy.
The judgment was delivered by Mr. Justice Shujaat Ali Khan in consolidated writ petitions, including W.P. No. 3940 of 2023 and W.P. No. 6146 of 2023, against the Lahore Electric Supply Company (LESCO).
The Court held that the subsequent discontinuation of the Prime Minister Assistance Package could not retrospectively deprive the petitioners of financial benefits already sanctioned in their favour.
Case Background and Facts
1. Mst. Fehmida Akhtar v. Chief Executive LESCO, etc. – W.P. No. 3940 of 2023
The husband of the petitioner, late Ijaz Ahmad Virk, who was serving as Line Superintendent-I, passed away on June 30, 2015.
After completion of the requisite departmental formalities, the Director General (Administration), LESCO, sanctioned the following financial benefits under the Prime Minister Assistance Package:
– Rs. 50,00,000/- for the purchase of a plot.
– Rs. 12,00,000/- as a lump-sum financial grant.
Despite the formal sanction of these amounts, LESCO failed to release the payments, compelling the widow to seek constitutional relief from the Lahore High Court.
2. Connected Petition – W.P. No. 6146 of 2023
The connected petition was also filed by an affected family member who faced similar departmental delays and reluctance in receiving financial assistance.
Despite multiple proceedings, including contempt proceedings, the sanctioned financial benefits remained unpaid, necessitating intervention by the High Court.
Legal Controversy: Subsequent Discontinuation of the Assistance Package
The principal controversy arose from an Office Order dated September 6, 2022, issued by LESCO pursuant to the 248th Meeting of its Board of Directors held on June 29–30, 2022.
Through the said order, the Prime Minister Assistance Package was declared discontinued/revoked with effect from November 30, 2021.
LESCO took the stance that since the actual payments had not been disbursed before November 30, 2021, the petitioners were no longer entitled to receive the sanctioned financial assistance.
The petitioners, however, maintained that their financial entitlements had already been approved by the competent authority in 2020, much before the discontinuation of the package.
Lahore High Court’s Findings and Legal Principles
While deciding the consolidated petitions, the Lahore High Court rejected the departmental justification and emphasized the protection of rights already accrued and finalized.
The important legal principles emerging from the judgment include:
1. No Retrospective Withdrawal of Sanctioned Benefits
The Court took notice of the fact that the financial assistance had already been sanctioned in favour of the petitioners in 2020, whereas the discontinuation of the package was made effective from November 30, 2021.
2. Protection of Vested Financial Rights
A subsequent administrative policy decision cannot ordinarily be applied retrospectively to deprive beneficiaries of financial entitlements that had already been finalized and sanctioned by the competent authority.
3. Actual Disbursement Is Not the Sole Determining Factor
Once the competent departmental authority has sanctioned the financial benefits, the department cannot justify withholding payment merely because the actual disbursement remained pending until after the discontinuation of the policy.
4. Departmental Inaction Declared Illegal
The continued failure of LESCO to release the sanctioned amounts was held to be illegal and unlawful, amounting to an unjustified denial of the petitioners’ legitimate financial entitlements.
Final Judgment and Directions
The Lahore High Court accepted both writ petitions and issued the following directions:
1. The inaction and refusal of LESCO authorities to release the already sanctioned financial assistance were declared illegal and unlawful.
2. The Director General (Administration), LESCO, was directed to ensure forthwith payment of all amounts previously sanctioned in favour of the petitioners under the Prime Minister Assistance Package.
3. No order was made as to costs.
Legal Significance of the Judgment
This judgment carries considerable significance for the families of deceased employees who were granted financial assistance under the Prime Minister Assistance Package but whose payments remained pending due to departmental delays.
It reinforces an important legal principle: A department cannot deprive a beneficiary of an already sanctioned financial entitlement by relying upon a subsequent discontinuation of the policy, particularly where the sanction was granted before the discontinuation became effective.
The judgment may provide important legal support to similarly placed families facing non-payment of previously sanctioned financial assistance.
Conclusion: The Lahore High Court has reaffirmed that administrative decisions cannot be used as a tool to defeat finalized financial entitlements and that departmental authorities are legally bound to honour their own lawful sanctions.
Note: This article is based on the supplied judgment summary. The exact judgment date, complete case title of the connected petition and reported citation may be added after verification from the certified judgment.
