PESHAWAR: A divisional bench of Peshawar High Court (PHC) comprising JJ Syed Arshad Ali and Shah Khan heard a petition filed by Javed Iqbal Khattak, former Chief Executive Officer (CEO) Khyber Pakhtunkhwa Economic Zones Development and Management Company (KP-EZDMC) who was removed from his post by KP Cabinet.
Shumail Ahmad Butt while representing the petitioner informed the Court that his client was first appointed for an extendable term of 3 years in March 2020 and his contract was later extended for another term of 3 years by KP cabinet in 2022 on recommendation of the Board of Directors KP-EZDMC which will expire in 2026.
He further argued that Section 190 of the Companies Act authorizes the Board of Directors for removal of CEO KP-EZMDC is a Section 42 Company with a Board of Directors having 8 out of 12 directors from private sector.
He maintained that KP Cabinet is not vested with any authority to remove a Chief Executive Officer. While referring to record, Butt further argued that Javed Iqbal has exceptional track record and his annual Performance Evaluation Reports (PERs) also prove him a great asset to the company.
He also highlighted that before removing him, provincial government didn’t bother to consult the board. Citing different judgments, he further argued that in case of any public sector company, no one can just throw an employee out of company without a show-cause notice or opportunity of fair hearing.
Shumail Ahmad Butt also invited the attention of the bench to a recent judgment of PHC also authored by Justice Syed Arshad Ali where the court has struck down a similar removal of CEO Water Supply and Sanitation Programme (WSSP), another government owned company.
He also informed that board has also objected to removal of Javed Iqbal while reposing full confidence in performance of the outgoing CEO.
Waqar Asstt AG while representing the government informed the court that department has duly notified removal of CEO on 2/9/2024 and has initiated process of appointing a new CEO for the company.
The court after hearing arguments required the Government to file comments within 3 days and fixed the case for final disposal on September 12, 2024.
While adjourning the matter, the Court has stopped the government for appointing any other person as CEO of the Company or initiating the process of recruitment.
Copyright Business Recorder, 2024
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