P L D 2026 Supreme Court 69

 P L D 2026 Supreme Court 69

Present: Aamer Farooq and Ali Baqar Najafi, JJ

The PROVINCE OF PUNJAB through Chief Secretary, Government of

the Punjab,

Lahore and others---Petitioners

Versus

T&T EMPLOYEES IDEAL COOPERATIVE HOUSING SOCIETY

LIMITED and another ---Respondents

Civil Petition No.2735-L of 2015, decided on 25th April, 2025.

(Against judgment dated 16.09.2015, passed by the Lahore High Court,

Lahore in W.P. No.5817 of 2015).

(a) Punjab Government Rules of Business, 2011---

----Cl. 5---Co-operative Societies Act (VII of 1925), S. 43---Constitution of

Pakistan, Arts.129 & 139(3)---Complaints of financial mismanagement

and administrative irregularities against a cooperative housing society--

-Power of Chief Minister to order initiation of inquiry---Scope---High

Court accepting society s plea that only Registrar of cooperative

societies could hold inquiry against the society---Legality---Acting upon

the complaint received against working of a cooperative housing

society, the Chief Minister directed his inspection team to conduct an

inquiry---The society challenged this inquiry before the High Court

under Article 199 of the Constitution, contending that the Chief

Minister had no authority to order such inquiry since the Cooperative

Societies Act, 1925 provided its own mechanism for supervision and

inquiry---The High Court accepted the society s plea and set aside the

inquiry proceedings---Against High Court s decision, the Government

of Punjab filed the present petition before the Supreme Court---Pivotal

question requiring determination before the Supreme Court was as to

Whether the Chief Minister, under Clause 5(2) of the Punjab

Government Rules of Business, 2011, possessed the legal authority to

initiate or order an inquiry into the affairs of a cooperative society

registered under the Cooperative Societies Act, 1925, notwithstanding

the specialized supervisory mechanism prescribed under the said Act ?-

--Held: It was clear from clause5 sub-clause (2) that Chief Minister

could call for any case or information from any department, attached

department or regional office---In this regard, complaint made to the

Chief Minister s inspection team or the Chief Minister for probing into

the affairs of the society, fell within the sphere of Cooperative Laws,

wherein the secretary cooperative societies was the overall in-charge--

-Clause 5 permitted Chief Minister to call for record and issue directions to government departments---This function was

administrative in nature and did not amount to statutory intervention-

--However, the inquiry could not usurp the functions of the Registrar

of the authorities empowered under the Act---While the High Court

correctly identified the supremacy of the Act in terms of substantive

regulation, it erred in concluding that Chief Minister had absolutely no

authority to order or initiate an inquiry or call for information even

through competent department---The Constitutional and

administrative role of the Chief Minister had to be given its due effect--

-Judgment of the High Court was not sustainable as it has construed

Clause 5 ibid in a restricted manner and had made the referred power

of the Chief Minister dormant wherever there was statutory regulatory

scheme work---Chief Minister was not excluded from calling

information or record pertaining to the cooperative societies or any

provincial department or attached department under Clause 5 of the

Rules---Leave to appeal was granted and present petition was

converted into appeal which was accordingly allowed.

(b) Co-operative Societies Act (VII of 1925)---

----S. 43---Punjab Government Rules of Business, 2011, Cl. 5---

Complaints against working of a cooperative housing society---Holding

of inquiries into affairs of a society---Jurisdiction of Registrar of

cooperative societies---Powers of Chief Minister to order an inquiry

into affairs of a society---Scope---The Cooperative Societies Act, 1925 is

a special enactment designed to regulate the formation, operation and

supervision of Cooperative Societies in Pakistan---It vests with

supervisory and regulatory powers in the Registrar of the Cooperative

Societies and the Provincial Government---Section 43 of the Act

empowers the Registrar, either on his own motion, or upon the

complaint to hold inquiries into the working of a society---However, a

complaint made to Chief Minister s inspection team of the Chief

Minister for probing into the affairs of the society falls within the

sphere of cooperative laws---Chief Minister is not excluded from

calling information or record pertaining to the cooperative societies or

any provincial department or attached department under Clause 5 of

the Rules.

(c) Interpretation of statutes---

----It is well settled principle of statutory interpretation that where

subject statute provides a complete code and procedure for redressal of grievance then it takes precedence over general or executive

provision.

(d) Interpretation of statutes---

----The fundamental principle of statutory interpretation is that

apparent conflict between general and special law should be resolved

through harmonious construction.

Awais Ahmed Qazi, Addl. A.G., Punjab for Petitioners.

Waqar A. Sheikh, Advocate Supreme Court along with Syed Fawad

Shah, Sr. Law Officer and Rai Mudassar Nawaz, Law Officer, (for

respondent No. 1)

Date of hearing: 25th April, 2025.

JUDGMENT

AAMER FAROOQ, J.---This judgment arises out of a petition for

leave to appeal filed by the Government of Punjab against the

judgment dated 16.09.2015, passed by the Lahore High Court, wherein

the learned High Court allowed the writ petition filed by T&T

Employees Ideal Cooperative Housing Society Limited ("the Society")

and held that the Chief Minister of Punjab did not possess the requisite

legal authority to initiate or order an inquiry into the affairs of the

said society.

1. INTRODUCTION

The present matter invites adjudication on a significant question of

administrative law concerning the distribution of power between

statutory frameworks and executive rules of governance. The crux of

the dispute lies in determining, whether the Chief Minister Punjab

under Clause 5 of the Punjab Government Rules of Business, 2011 (the

Rules), is vested with the authority to direct inquiry into the affairs of

a cooperative society operating under the Cooperative Societies Act,

1925 (the Act). The learned High Court, while adjudicating W.P.

No.5817-2015, accepted the plea of the Society by concluding that the

Chief Minister's Office lacked such authority due to the comprehensive

mechanism prescribed under the Act. Aggrieved by this

pronouncement, Government of the Punjab invoked jurisdiction of this

Court under Article 185(3) of the Constitution of the Islamic Republic

of Pakistan, 1973 (the Constitution).

2. FACTUAL BACKGROUND

The complaint(s) were received by the petitioners with respect to

the affairs of the Society qua financial mismanagement and

administrative irregularities. Acting on the complaint(s), the Chief Minister Punjab directed his Inspection Team to enquire into the

affairs of the Society seeking relevant record and furnish preliminary

findings. The Society challenged the inquiry before Lahore High Court,

Lahore by invoking provisions of Article 199 of the Constitution that

the Chief Minister's Office had no jurisdiction to order such inquiry

due to the specialized legal regime established under the Act. Learned

High Court concurred with the Society's contention and quashed the

inquiry proceedings initiated under the Chief Minister's directive. The

Government of the Punjab, asserting the legal competence of the Chief

Minister under Clause 5 of the Rules, approached this Court seeking

leave to appeal through the present petition.

3. SUBMISSIONS BY THE PARTIES

At the very outset, learned counsel for respondent No.1 objected to

the maintainability of the instant petition in light of the fact that Intra-

Court Appeal (ICA) is pending before the High Court.

Learned Additional Advocate General, Punjab on instructions,

submitted that the referred ICA has been dismissed on 07.07.2023. It

was submitted that even otherwise mere fact that appeal was filed,

does not make the instant petition incompetent. On merits, learned

Additional Advocate General, Punjab submitted that in light of Clause 5

of the Punjab Government Rules of Business, 2011 (the Rules), the

Chief Minister may call for any case or information from any

department, attached department or regional office. It was further

submitted that similarly, under Clause 17 of the Rules, Chief Minister's

Inspection Team is directly responsible to the Chief Minister and

conducts business under his/her orders. Learned Advocate General

pointed out that since the Rules have been framed under the

Constitution, they are statutory.

Learned counsel for the respondents inter alia contended that

under the Co-operative Societies Act, 1925, a mechanism has been

provided, whereby the cooperative hierarchy is to supervise the affairs

of any cooperative society. It was submitted that the Secretary,

Cooperative Societies is the overall in-charge and in his presence, Chief

Minister or his/her Inspection Team has no power/authority to inspect

or inquire into the affairs of the respondent Society. Learned counsel

took the Court through the provisions of the Rules to substantiate that

only the concerned department or attached department has the

authority to probe into the affairs of the concerned department.

4. LEGAL ISSUES

The core legal issue requiring adjudication is whether Clause 5 of

the Rules empowers the Chief Minister of the Punjab to initiate or

order an inquiry into the affairs of a Cooperative Society registered under the Act notwithstanding the specialized mechanism provided

under the said Act.

5. ANALYSIS AND DISCUSSION

A. Statutory Framework under the Cooperative Societies Act, 1925

The Cooperative Societies Act, 1925 is a special enactment designed

to regulate the formation, operation and supervision of Cooperative

Societies in Pakistan. It vests with supervisory and regulatory powers

in the Registrar of the Cooperative Societies and the Provincial

Government. Section 43 of the Act empowers the Registrar, either on

his own motion, or upon the complaint to hold inquiries into the

working of a Society. It is well settled principle of statutory

interpretation that where subject statute provides a complete code and

procedure for redressal of grievance then it takes precedence over

general or executive provision.

B. Nature and Scope of Clause 5 of the Rules

"5. Functions of the Chief Minister.--(1) The Chief Minister shall: -

(a) be the head of the cabinet;

(b) coordinate all policy matters;

(c) perform functions assigned to him under the Constitution, any

law or rules, including these rules;

(d) keep the Governor informed on matters relating to Provincial

administration and on all legislative proposals the Government

intends to bring before the Assembly as required under

Article 131 of the Constitution;

(e) communicate to the Governor the decisions of the Cabinet

relating to the administration of the province and proposals for

legislation; and

(f) submit for the reconsideration by the Cabinet any matter which

the Governor requires to be so reconsidered in terms of

Article 105 of the Constitution.

(2) The Chief Minister may call for any case or information from any

Department, Attached Department or Regional Office."

Punjab Government Rules of Business, 2011 are administrative

instrument framed by the Government of Punjab (provincial

government) under Article 139(3) of the Constitution to regulate the

internal governance or distribution of work within the provincial

government. The concept and working of the provincial government

are provided in Article 129 of the Constitution. Under sub-article (1) of

Article 129, subject to the Constitution the executive authority of the Province shall be exercised in the name of the Governor by the

Provincial Government, consisting of the Chief Minister and Provincial

Ministers, which shall act through the Chief Minister. The Rules do not

and cannot override or confer statutory powers not granted by an Act

of the Parliament or the Provincial Assembly, however, they serve to

formulate exercise of the executive authority and oversight. The bare

reading of clause 5 sub-clause (2) shows that Chief Minister may call

for any case or information from any Department, Attached

Department or Regional Office. In this regard, complaint made to the

Chief Minister's Inspection Team or the Chief Minister for probing into

the affairs of the Society, falls within the sphere of Cooperative Laws,

wherein the Secretary Cooperative Societies is the overall in-charge.

The question, thus arises, whether Clause 5 can be interpreted to allow

the Chief Minister to intervene in the matter governed exclusively by

the Act. The Chief Minister is not a statutory functionary under the Act.

Clause 5 permits Chief Minister to call for record and issue directions

to Government Departments. This function is administrative in nature

and does not amount to statutory intervention.

C. Harmonious Construction

The fundamental principle of statutory interpretation is that

apparent conflict between general and special law should be resolved

through harmonious construction. The Act governs the substantive

regulatory framework of cooperative societies, including inquiry

procedure, appointment of officials and remedial action. The Chief

Minister's power under Clause 5 must be construed in light of and

subject to this regulatory scheme.

Moreover, while the Chief Minister may call for information or

record for the purposes of oversight, policy evaluation or political

accountability any formal inquiry into the affairs of cooperative

society must conform to the procedural and substantive requirements

of the Act. The inquiry cannot usurp the functions of the Registrar or

the authorities empowered under the Act.

D. Evaluation of Judgment of Lahore High Court

The learned High Court, in its judgment, adopted the rigid

interpretation effectively excluding the Chief Minister from any

oversight or administrative enactment in matters pertaining to

cooperative societies. Such reading unduly narrows the scope of

Clause 5 ibid ignoring the administrative place of Chief Minister as the

executive head of a province and fails to differentiate between

executive oversight and statutory functionaries. While learned High

Court correctly identified the supremacy of the Act in terms of

substantive regulation, it erred in concluding that Chief Minister had absolutely no authority to order or initiate an inquiry or call for

information even through competent Department. The Constitutional

and administrative role of the Chief Minister must be given its due

effect. In light of the referred position, judgment of the learned High

Court is not sustainable, as it has construed Clause 5 ibid in a

restricted manner and has made the referred power of the Chief

Minister dormant wherever there is statutory regulatory scheme

work.

6. CONCLUSION AND ORDER

For the foregoing reasons, we hold that the Chief Minister of the

Punjab is not excluded from calling information or record pertaining

to the cooperative societies or any provincial department or attached

department under Clause 5 of the Rules, however, any formal action, if

any, against the society or the department must be strictly in

accordance with statutory regulatory mechanism by the competent

authorities designated there-under. We are satisfied that the instant

petition raises the substantive question of law of public importance

relating to the interpretation of constitutional and statutory

provisions, hence leave to appeal is granted and instant petition is

converted into appeal which is accordingly allowed and the impugned

judgment dated 16.09.2015 passed by Lahore High Court, Lahore is set

aside; consequently, writ petition filed by the Society, stands dismissed.

No order as to costs.

UN/P-13/SC Petition dismissed.