NTDC employees not civil servants, company directed to review time-scale upgradation cases: Supreme Court

The Supreme Court has held that employees of the National Transmission and Despatch Company (NTDC) do not become civil servants merely because the company adopts WAPDA rules and are not entitled to approach the Federal Service Tribunal.
However, the company’s management is bound to ensure equal and fair treatment of its employees.
A three-member bench comprising Justice Muhammad Ali Mazhar, Justice Musarrat Hilali and Justice Irfan Saadat Khan issued the judgment in the case concerning time-scale upgradation for two retired NTDC employees, Masood Ahmed Qureshi and Muhammad Afzal Gul, setting aside the Federal Service Tribunal’s decision.
In its detailed judgment, the Supreme Court directed the NTDC management and its Board of Directors to reconsider the applications of both retired employees fairly and independently and issue reasoned written orders within two months.
The court held that if similarly placed employees had been granted the benefit of time-scale upgradation, the two retired employees should also receive the same benefit, with their arrears calculated and paid accordingly.
The judgment clarified that not every person employed by the state necessarily qualifies as a civil servant. Such status is determined under the relevant law, and employment in a public-sector organisation alone does not confer that status.
The court observed that NTDC was an independent public limited company, separate from WAPDA. Therefore, the provision of the WAPDA Act under which the authority’s employees are treated as civil servants for the purposes of service tribunals did not automatically extend to a separate corporate entity such as NTDC.
It held that decisions concerning promotions, career progression and other terms of service of NTDC employees fell within the jurisdiction of the company’s Board of Directors. The adoption of WAPDA rules for internal administrative matters did not alter NTDC’s distinct corporate status.
The court further observed that although NTDC employees were not entitled to approach the Federal Service Tribunal, this did not absolve the company’s management of its responsibilities. The company was bound to implement its internal rules, policies and decisions and treat employees equally without discrimination.
According to the case record, both employees had passed the departmental promotion examination and applied for time-scale upgradation. However, the relevant authorities rejected their applications on April 1, 2022.
Subsequently, on February 29, 2024, the Federal Service Tribunal accepted their appeals and directed that they be granted time-scale upgradation to Grade 18 with effect from August 12, 2004.
NTDC challenged the tribunal’s decision before the Supreme Court. The apex court set aside the tribunal’s judgment and dismissed the appeals, while directing the company’s management to reconsider the employees’ cases and issue reasoned orders within two months.