Lahore (HRNW)- The Lahore High Court has ruled that the Employees’ Old-Age Benefits Institution (EOBI) must examine a company’s records and employee details in accordance with the law before imposing additional contribution dues.
Justice Jawad Hassan issued the written judgment while hearing a petition filed by Security Organizing System Pakistan (Private) Limited. The court set aside the decisions of the EOBI Adjudicating Authority and Appellate Board concerning the company.
The court held that EOBI cannot directly invoke Section 12(3) of the EOBI Act when the relevant company records are available. The provision may be used when an employer fails to maintain records or provide the necessary information, making it difficult for the institution to determine the applicable contributions.
The petitioner had argued that EOBI demanded additional contributions without first examining the company’s records, returns and other relevant documents. The company also maintained that it had already paid its monthly EOBI contributions for the period in question.
The Lahore High Court remanded the matter to the relevant authority for reconsideration, directing EOBI to provide the company an opportunity to present its position before issuing a fresh, reasoned decision. The court ordered that the new decision be issued within two months.
The ruling establishes that any determination of additional EOBI dues must follow the prescribed verification process and be based on an examination of the available records.
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