IN THE LAHORE HIGH COURT, LAHORE.

WRIT PETITION NO.235167/2018

1. M/S Brothers Construction Company

………..PETITIONER
VERSUS

1. Government of the Punjab etc.

………..RESPONDENTS

REPORT AND PARAWISE COMMENTS ON BEHALF OF RESPONDENT NO.1

Respectfully Sheweth,
REPORT
With the establishment of Local Governments under PLGA, 2013, the
erstwhile District Governments have been abolished and various departments thereunder
stand transferred to the assigned successors. Accordingly, the District Officers (Buildings) &
District Officers (Roads) under the Executive District Officer (Works & Services) who were
parts of the respective District Governments, now stand reverted to the Communication and
Works Department in the Provincial setup. Works & Services Department being the sole
executing agency of the erstwhile district governments executed the ADP schemes
pertaining to the Education, Health, Livestock and Dairy development Department etc. as
well as the schemes funded by the “tied grants”. The said department deducted securities
from the contactors at prescribed rates in the given manner. The custody and refund of the
securities has also been prescribed under the relevant rules, which were either deposited
into the Public Account of the District Local Fund or were converted into interest bearing
investment account in commercial banks in prescribed manner.

Meanwhile, after the abolition of the local governments the respective Local
Funds were also abolished. Accordingly, the cash balances as on 30.06.2017 of the local
fund of the District Governments, including the “Security Deposits” was shifted to Provincial
Account No. – I (Non – Food). Due to the afore said changes in the positions / status of the
offices, refund of securities of the contractors have been reportedly stuck up in various
districts.

In the light of these instructions, Finance Department provided funds

amounting to Rs.650.000 million during FY 2017-18, to discharge validly accrued liabilities
on account of refund of securities to the contractors who executed work with the erstwhile
District Government but could not get refund due to non-maturity of securities or due to
suspension of account No.IV on 31.12.2016 (Annex-A). These funds were provided for
those security deposit which were matured. However, despite of provision of these funds,
some claims of security are still unpaid. To ascertain the requirement of funds, Finance
Department constituted a committee to verify these security deposits of Contractors
pertaining to defunct Account-IV of District Governments vide notification dated 27.07.2018
(Annex-B). 1st meeting of the committee is going to be held on 24.10.2018 and LG&CD and
C&W Departments have already been directed to provide consolidated cases alongwith
relevant documents for perusal of the committee. All cases of security deposit including
petitioners security deposit will also be discussed in the upcoming meeting and if found,
justified/legal, the requisite funds would be provided for clearance of security.

PARA-WISE COMMENTS:
1. That as matter of record
2. That need no comments
3. Correct.
4. That as matter of record
5. True.
6. That as matter of record
7. Correct. The said meeting is re-scheduled on 24.10.2018 at 10:30 A.M in Finance
Department due to preparation/announcement on Budget on 16.10.2018. The
meeting earlier scheduled for 17.10.2018 could not be held.
8. To clear the all outstanding security deposit of the contractor, Finance
Department has constituted a committee to consider their cases and
Administrative Department were advised to provide a consolidated case for
discussion/approval of the committee including the case of the petitioner.
9. That as matter of record
10. That as matter of record

PRAYER

In view of the above submission, it is prayed that the instant Petition may
kindly be disposed of and the petitioner may be informed that he may approach LG&CD
Department to provide the supporting documents for placing the case before the said
committee for its consideration/approval.

DEPUTY SECRETARY (PFC/LGF)

FINANCE DEPARTMENT
On Behalf of Respondent No.1
COURT CASE / MOST URGENT
THROUGH SPECIAL MESSENGER

No. FD(PFC)1-35/2017 (LGs)

GOVERNMENT OF THE PUNJAB
FINANCE DEPARTMENT
042-99212997 Dated Lahore, the October, 2018

To,
The Assistant Registrar (Judicial),
for Deputy Registrar (Judicial),
Lahore High Court, Lahore.

Subject:- W.P.NO. 235167/2018 TITLED “M/S BROTHERS CONSTRUCTION

COMPANY VS, GOVERNMENT OF PUNJAB ETC”

I am directed to refer to the subject noted above and find enclosed herewith a

Report / Para-wise Comments (in triplicate) on behalf of Finance Secretary, Government of

the Punjab (Respondent No.1) for further necessary action.

SECTION OFFICER (PFC)

FINANCE DEPARTMENT
NO. & DATE EVEN.
A copy is forwarded for information and necessary action to the:-
1. Additional Advocate General, Punjab, Lahore, 15-Fane Road, Lahore w.r.t his letter
No.18291/AG.Pb, dated 12.10.2018
2. Deputy Secretary (Legal), Finance Department.

SECTION OFFICER (PFC)

FINANCE DEPARTMENT
 IN THE LAHORE HIGH COURT, LAHORE.

WRIT PETITION NO.235167/2018

M/S Brothers Construction Company

………..PETITIONER
VERSUS

Government of the Punjab etc.

………..RESPONDENTS

COMPLIANCE REPORT ON BEHALF OF FINANCE DEPARTMENT

Respectfully Sheweth,

REPORT

It is submitted that Finance Department has released an amount of

Rs.600.00 million vide advice bearing U.O.No.FD(DG)1-19/2016 (P-XII), dated
09.11.2018, in favour of Communication and Works Department for refund of validly
matured securities of contractors, strictly in accordance with the terms & conditions of the
agreements between the contractors and erstwhile District Governments (Annex-A). At
present, no action is required on the part of Finance Department. Now, the funds are
available for utilization/payment of contractor’s security.

In view of the above, the said Writ Petition No.235167/2018 may kindly be
disposed of to the extent of Finance Department.

DEPUTY SECRETARY (PFC/LGF)

FINANCE DEPARTMENT
On Behalf of Finance Secretary
COURT CASE / MOST URGENT
THROUGH SPECIAL MESSENGER

No. FD(PFC)1-35/2017 (LGs)

GOVERNMENT OF THE PUNJAB
FINANCE DEPARTMENT
042-99212997 Dated: Lahore, the 28th November, 2018

To,
The Assistant Registrar (Writ),
for Deputy Registrar (Judicial),
Lahore High Court, Lahore.

Subject:- W.P.NO. 235167/2018 TITLED “M/S BROTHERS CONSTRUCTION

COMPANY VS, GOVERNMENT OF PUNJAB ETC”

Kindly refer to the subject noted above and find enclosed herewith a

compliance report in the subject Writ Petition (in triplicate) on behalf of respondent No.1/

Finance Secretary, Government of the Punjab, Finance Department, for further necessary

action.

SECTION OFFICER (PFC)

FINANCE DEPARTMENT
NO. & DATE EVEN.
A copy is forwarded for information and necessary action to the:-
1. Malik Abdul Aziz Awan, Additional Advocate General, Punjab, Lahore w.r.t his letter
No.18291/Ag.Pb, dated 12.10.2018.
2. Deputy Secretary (Legal), Finance Department.

SECTION OFFICER (PFC)

FINANCE DEPARTMENT