Lahore High Court Nullifies NTDC MD Appointment

The Lahore High Court has made a significant ruling regarding the appointment of the managing director of the National Transmission and Dispatch Company (NTDC). In a 10-page decision by Justice Shahid Karim, it was highlighted that the appointment process for the MD position did not comply with the relevant regulations in place at the time.

According to the court's findings, the recruitment process for the MD of NTDC began when the Public Sector Companies Rules, 2013, were in effect. Despite the NTDC board unanimously recommending Khawaja Rafat Hussain for the role, Rana Abdul Jabbar Khan was appointed as the MD. This decision was based on a recommendation by the Energy Ministry, which was later found to be in violation of the applicable laws.

The crux of the matter lies in the discrepancy between the laws governing such appointments. While the appointment process started under the Companies Act, 2017, and the Public Sector Companies Rules, 2013, the federal government had already introduced the State-Owned Enterprises Act, 2023, by the time the appointment was finalized. The court ruled that the appointment should have been made in accordance with the 2023 law, which prohibits the federal government from making appointments in state-owned enterprises.

Despite arguments from the federal government and NTDC's legal representatives that the 2023 law should not apply retroactively, the Lahore High Court stood firm in its decision. Consequently, the court declared the current MD's appointment at NTDC null and void, emphasizing the importance of adhering to the appropriate legal framework in such matters.

The Lahore High Court's ruling serves as a reminder of the significance of following the prescribed regulations and laws in all official appointments. This decision not only impacts the current MD of NTDC but also underscores the necessity for strict adherence to the legal framework governing public sector appointments.