Conceived & Written by: Sir Rana Mubasher

Case Study Business Law Season-VI (The Idiots’ Dispute)

Virus VS Mr. Ranchho
Mr. Suhas and Mr. Raju Restogi are the Labor department inspectors of SITE Factory area Block-2. They are appointed two years ago on
October 1st 2018 by the Labor department and their CV’s available in appendix # 1. To work more conveniently they both mutually decide
factories they have to inspect. Ranchhore Sugar Mills (RSM) is also come under Mr. Raju Restogi’s jurisdiction as per their mutual
understanding.
Mr. Ranchore Das Chanchar is running a Sugar Mill named Ranchhore Sugar Mills (RSM) a seasonal Sugar Mill in SITE Factory area
Block- 2, Karachi. He is a highly educated & qualified person (CV appendix # 2). Their factory’s operation starts in 1st June of every year.
All of their HR needs are fulfilled by Viro Human Capital Services (VHCS) owned by Viro Saharstrabuddhi under a contract available
in appendix # 4. Ranchhore Sugar Mills (RSM) hires staff under written employment contracts. (Detail Appendix # 5). Mr. Chattur
Nigam is the factory manager of RSM for last five years. In beginning of season in July 2019, he told Mr. Ranchhore Das that we didn’t
fulfill the official formalities since 2018 including basic formalities required for commencement of operations. . Mr. Ranchhore Das
said, “Have you received any notice regarding that from relevant authorities” Manager replied, “No Sir” “then chill and concentrate on your
work” Ranchhore Das replied.
Mr. Viro Saharstrabuddhi is running a Garments factory named Men’s Fashion World (MFW) employing 290 workers. He is the joint
owner of MFW & VHCS. Both of his setups in same building located in SITE Industrial Area Block 2, Karachi. He has done MBA in HR
(CV appendix # 3) and running both businesses for last ten years. They are also providing HR services to other factories in the Karachi. He
believes that better care for his supplied workforce makes him one of the reputed HR services providers in future and due to this he can
expand his business throughout the world that’s why he take proper care of his supplied workforce by providing them all possible support
including legal support. In HR services providers market, a standard practice is followed. Agencies take one salary from the owner of the
organization and half of the first salary from the employee as commission. But due to some reasons, VHCS charge half of the first salary
from the worker but just 20% of salary commission from Ranchhore Sugar Mills (RSM).

In RSM, there are more than 650 workers working round the clock in the season. In regular Sugar Mill, there are fumes in every factory and
it can be felt in even admin rooms as well but the level is maintained as per Factory rules. Chhotay is a 14 years old boy working for last
two month where he do office boy work for production manager beside that he was well-trained by the manager to operate power generator
which is safely installed in windowless pack room. He has to work for five hours in a day even in case of emergency, production manager let
him go knowing that he is an Asthma patient for last around one year as per his own statement. In recent month his condition became worse
due to asthmatic attack and as per doctor’s statement he need two months rest. After one month of rest period, RSM paid him the salary for
the period he worked but not for the medical leave period. When he contacted RSM administration they refused it by saying that “you are
not eligible for that”. In this miserable situation he contacted VHCS for compensation.
Pia is another RSM worker, working for last six month in production department where she is basically working as support staff. She is also
a stage actress performed ordinary roles on theater in the evening to cop up with financial needs. In RSM, her job is to deliver Raw material
from store to the production staff when machine operations are on in the factory because as per factory administration rules, no one can enter
in any other department without having written permission in order to avoid disturbance and maintain safety in production process. She is
also responsible for delivering Packing Material to the packing staff beside that she has to lubricate sugarcane crushing machines three times
during her shift. During this process it is important to keep the machine in running position otherwise the whole process of production may
shattered.
Factory work round the clock in three shifts, like other production department workers, Pia’s shift is also rotated but admin staff is exempted from
this rule. Each production worker has to work ten days in each shift in a month. She is the only bread earner of her family comprises of two school
going brothers and two old sick parents that’s why she needs to take care of her family as well. Due to work in evening and night shifts, it is difficult
for her to take proper care of her family. She requested admin manager not assign evening and night duties to her. Admin manager refused to do this
by showing her employment contract in which it is clearly mentioned that she was appointed in production department and in production department
we have to rotate people in shifts to accommodate all workers. He also said, “if you can perform on theater in the evening, why not perform duty in
the factory”. This situation was very stressful for her and at last she brought that matter into the notice of VHCS for help.
Ferhan Qureshi (works in packing department, got his hand fractured from production machine. On July 14, during his eight hour shift, while going
to store to bring packing material from store where Mr. Dubey (production worker), his close friend saved him and get him to the doctor with other
factory workers immediately. Accident reported to the authorities within prescribes time and treatment done with relevant medical tests. Doctors
suggest him six month rest and management assured him to pay compensation. After one week he was terminated from job due to misconduct and
also refused to pay him the compensation because he was drunk that day and it is proved in his blood and urine test reports ( Appendix # 6). Ferhan
Qureshi protested that he was not drunk that day and reports have no effect on his compensation issue and also told them that whenever a person is
injured or died on work place or doing official assignment outside the official premises, organization has to pay compensation in all the
circumstances, but he didn’t get any response. Then he contacted VHCS for this injustice.

When matters came under VHCS notice, in reaction they stopped supplying 8 more worker committed by them and filed a suit against RSM by
adding more allegations against RSM accusing them for violation of most of the unfair labor practices and for illegal operations as per Labor Laws.
A month before filing suit in the court, all complaints (Appendix # 8) are submitted to labor department two months ago and after inspection by
labor department relevant inspector and verifying official records, this complaint was discharged by issuing inquiry report (Appendix# 9) in which
no evidence found against RSM. VHCS has to fight their supplied workers cases against the employers as per contract. (Details in appendix # 7).
RSM on other hand sent legal notice in which they are asking Rupees 500000 compensation for breaching contract for not supplying the 8 workers
committed by them.
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 Conceived & Written by: Sir Rana Mubasher

Appendix # 1
Mr. Suhas Mehta CV
Suhas Mehta
Flat # 24, 3rd Floor, North Nazimabad
Karachi.
Contact # 92-366-3396409
E-mail # suhas @yahoo.com
Date of Birth 11 April 1991
Marital Status: Single.
Father’s Name Sanjay Mehta
Academic Career:
• BBA From Karachi University
• I-Com From Karachi Board
• Matriculation From Karachi Board
Work experience:
Assistant Manager Sale: In MTD marketing for four years
Sale officer In Nizam Textile three years
Hobbies: Watching History, Discovery and National Geography Channels, Reading Books
& Sports:Playing and Cricket, snooker

Mr. Raju Das’s CV

Raju Das
House # 130-B, DHA Phase 2
Karachi.
Contact # 92-385-3724108
E-mail # raju@gmail.com
Date of Birth 28 August 1990
Marital Status: Married.
Father’s Name Das Kumar
Academic Career:
• B-Com From Karachi University
• I-Com From Karachi Board
• Matriculation From Karachi Board
Work experience:
Manager production In Ranchhore Sugar Mills five years
Sales Executive: In Aryan Fabrics for three years
Hobbies: Watching cricket, traveling,
photography. Sports: Playing Tennis, Squash and Cricket.

Appendix # 2
Mr. Ranchhore Das’s CV
Ranchhore Das
House # 130-B, DHA Phase 2
Karachi.
Contact # 92-388-3724205
E-mail # Ranchho@yahoo.com
Date of Birth 27 June 1980
Marital Status: Married.
Father’s Name Das Kumar
Academic Career:
• MBA HRM from Bredford University
• B-Com From Quad E Azam University
• I-Com From Karachi Board
• Matriculation From Karachi Board
Work experience:
General Manager Marketing: In Semtex Textile for Three years
Manager Marketing In Aryan Fabrics for four years
Marketing executive: In Aryan Fabrics for three years
Hobbies: Reading Books, Magazines, Fishing and trekking.
Sports: Playing Tennis, Squash and Cricket.
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 Conceived & Written by: Sir Rana Mubasher

Appendix # 3
Mr. Viro Saharstrabuddhi’s CV
Viro Saharstrabuddhi
House # 411, Block 8, Clifton
Karachi.
Contact # 92-366-5126209
E-mail # Viro@hotmail.com
Date of Birth 22 October 1970
Marital Status: Married.
Father’s Name Virkam Saharstrabuddhi
Academic Career:
• MBA Marketing from IBA
• B-Com From Punjab University
• I-Com From Lahore Board
• Matriculation From Lahore Board
Work experience:
Senior HR Manager: In China Telecom Pakistan for five years
Manager HR In DK cement for four years
HR officer: In Sunny Garments for six years
Hobbies: Watching movies, Hiking, Reading Books & writing three books, trekking.
Sports: Playing Tennis, Squash and Cricket.

Appendix # 4
Extract from Contract between VHCS and RSM
1- VHCS has to provide committed workforce within seven days at any cost. In case of delay no commission is given to VHCS.
2- VHCS will charge 20% of the first salary of the staff provided.
3- Payment will be made 40 days after employment of a worker.
4- All documents and person’s verification is the responsibility of VHCS.
5- The contract commission rates will not be disclosed in the market.
6- In case of non-payment, worker provided can be taken back until the payment is made.
7- Contract will be terminated by serving one month prior notice by any party.
9- In case of breach of contract, guilty party has to pay Rs: 500,000 as compensation.

Appendix # 5
Major clauses of Employment contracts Signed by the workers with RSM
Ferhan Qureshi’s contract:
1- He has to work 8 hours and seven days in a week in different shifts as assigned time to time.
2- His Job is to pack yarn cones in boxes in packing department where he will be delivered packing material in packing room. Due to intense work in
the department, delivering packed stock in stores is not his responsibility.
3- Compensation allowed as per government’s Labor Laws.
Pia’s Employment contract:
1- She has to work 8 hours and six days in a week in different shifts as assigned time to time in production department.
2- Her job is to deliver Raw material from store to the production staff. She is also responsible for delivering Packing Material to the packing staff
beside that she has to lubricate spinning machine three times during her shift.
3- Compensation allowed as per government’s Labor Laws.
Chhotay’s Employment contract:
1- He has to work 5hour in morning shift only
2- His duty is to work as office boy under production manager.
3- Compensation allowed as per government’s Labor Laws

Appendix # 6
(Ferhan Qureshi Medical Test Reports)
Munna Bhai Laboratories
Date: 14 July 2019
Patient Name : Ferhan Qureshi Gender: Male Age: 46 years
Test conducted within 8 hours of accident
Urine Test report 300 ng/mL
Blood Test report BAC 0.35 %
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 Conceived & Written by: Sir Rana Mubasher

Appendix # 7

Suit Details
Allegations Options for VHCS for Law Suit against RSM (Not all are valid)
1. Chhotay’s Work duration is not according to factory Act 1934.
2. Challenge Labor Department Report.
3. RSM is carrying illegal Operations of factory.
4. Holidays are not as mentioned in Factory Act 1934.
5. Illegal work assigned to the supplied worker by RSM.
6. Working conditions rules are violated by RSM.
7. Illegal Working hours.
8. Contract is not valid with RSM.
9. Unfair work Schedules for the workers.
10. Compensation is the right of Ferhan Qureshi.
11. RSM did void contracts with the worker
12. Not Paying Chhotay’s medical leave payment is illegal
13. Any other you found relevant.

Appendix # 8
Complaint Letter to Labor Department
12 September 2019
Honorable
Commissioner
Department of labor
Government of Sindh

Subject: Complaint Against Ranchhore Sugar Mills for unfair labor practices

Dear Sir

I am running a HR services providing business for more than ten years. During that period I provide productive HR to different
organizations. My repute as a quality HR is recognized by my clients and the ten years existence is evidence for long term
relationship with them. Most of the people prefer to have employment through our agency because we don’t let them alone in bad
situations even after employment.

I want to bring before you a very curtail matter reported by my supplied workers to Ranchhore Sugar Mills (RSM). Their brief detail
is as below;

1- Chhotay (a child worker), working with them for last more than two months. He was not treated according to law
while assigning duties and tasks. He had medical problem during working hours and doctor suggested him bed rest for two months
but RSM is not paying him salary without any reason.
2-Miss. Pia is a production worker, working in conditions which are not good, and she is also working in evening and night shifts due
to which she is not in the position to fulfill her family obligations properly. She brought this issue in front of management, but they
refused to help her out.
3-Mr. Ferhan Qureshi, a production worker is injured during the process of performing his duties and got his right hand fractured
and doctors suggested him six month rest. But no Medical compensation and salary is paid to him for that period.

I request you to intervene in all these above mentioned issues to save these poor people from this injustice.
Looking forward to a quick action.

With regards

Sincerely Yours
Viro Saharstrabuddhi
CEO VHCS
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 Conceived & Written by: Sir Rana Mubasher

Appendix # 9
Inquiry Report Labor Department on VHCS complaint

Date: 9 October 2019

Mr. Viro Saharstrabuddhi
CEO DHA

Subject: Inquiry Report on Complaint against Ranchhore Sugar Mills for Unfair Labor Practices

Dear Sir

We appreciate your concerns regarding workforce you supplied to different organizations. Your matter was taken very seriously and an inquiry was
initiated under supervision of our area inspector Mr. Raju. He deeply investigated the issues, and after examining all possible resources and records
of Ranchhore Sugar Mills (RSM), and with the help of the records available with our authorities. But there is no evidence found regarding any unfair
practice followed by RSM against labor Laws so your complaint is dismissed on technical grounds available in all relevant laws. If you still have
reservations regarding the decision, you can file appeal in the court within 15 days of that report.

Regards,

Shiekh Waseem Haider

Commissioner
Department of Labor
Government of Sindh

Task
1- You have to go through from whole documents thoroughly and check Appendix # 7 carefully to decide which allegations are right and
which are not. (Keeping in view Contract Act 1872, Factory Act 1934, Workmen compensation act 1923, West Pakistan Industrial &
commercial Employment Act 2015 and any other labor law relevant to this case)
2- Team A has to file suit keeping in view all above information by mentioning sections and clause of laws in support of your allegations.
And submit at due date. This information will be passed on to Team B. All information is correct and there are no technical mistakes in the
case and in related documents. Apart from this anything you find may be a clue that helps you in perusing you case in the court.
3- Team B will be responsible to answer the allegation within one week of receiving the allegations with relevant sections and clauses of
relevant laws.
4- On decided date court will provide both penal of lawyers’ four hearings to prove their points.
5-Court will make the decision after last hearing.
6- Both parties have to submit list of witnesses at the time of submitting case documents. No witness will be allowed after that.

Rules
1- The project is comprises of 15 marks out of which 10 marks will be jointly awarded to teams on the case written documents submitted and
rest of 5 on the individual performance in the court.
2- No performance in the court will be awarded zero.
3- This project will be adopted under oath for not being consulting with any lawyer. Team found guilty will be disqualified and awarded zero
marks.
4- During hearing, all court decorum has to be followed. Non-compliance may cause deduction in marks.
5-After finalizing dates no extension will be given in any case whatsoever.
6- Lawyer of both sides must follow the decorum of court, in case of violation individual or entire team can be disqualified.

Procedure
1. There will be 5 hearings of this case, each hearing will be considered as a day hearing.
2. Lawyers have to conclude their arguments maximum in 5th hearing, if honorable court think that there are still few things needed more
arguments then it is the discretion of court to extend court proceedings up to maximum one more hearing.
3. After decision lawyer of both parties can comment on decision in the light of laws discussed in the court.

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