KARACHI: Ruling that the weak financial condition of a department cannot furnish a lawful justification to withhold admitted post-retirement dues of its pensioners, the Sindh High Court has directed the Karachi Development Authority (KDA) to ensure payment of outstanding retirement benefits to pensioners within two months.

A two-judge constitutional bench headed by Justice Adnan-ul-Karim Memon also said that financial constraints of the KDA may explain the delay, but the same cannot indefinitely postpone the lawful rights of petitioners.

It is a settled principle of law that pensionary and retirement benefits were not a bounty or charity dependent upon the discretion or financial convenience of the employer, but constituted a vested and enforceable legal right accruing in favour of a retired employee upon completion of service, it added.

It issued these directives while disposing of a set of petitions filed by the retired employees of KDA seeking directives for respondents to release their pension and other post-retirement benefits without further delay, as well as sought an 18 per cent markup on such amount.

Bench orders KDA to clear dues of retired employees in two months

The bench in its order noted that petitioners’ dues, including provident fund, gratuity, commutation and other retirement benefits, have already been determined and acknowledged by the KDA, and the only defence put forth was severe financial constraints and shortage of funds.

Referring to a judgement of the Supreme Court, it also said that pensionary benefits were a continuing and recurring right attached to the livelihood and dignity of retired employees, and the same cannot be withheld on administrative or financial grounds.

“It is also settled that financial hardship or weak financial condition of a department cannot furnish a lawful justification to withhold admitted and accrued retirement dues of employees who have served the institution throughout their lives.

“The petitioners, after retirement, legitimately depend upon such benefits for their sustenance, medical needs and livelihood. Delayed payment of pensionary benefits causes undue hardship, humiliation and mental agony, particularly to senior citizens who are no longer in active service”, it added

The bench further noted that in 2022, the SHC had provided a mechanism for phased payment to the retired employees of KDA under the supervision of the official assignee.

It was also brought on record that substantial amounts running into billions of rupees have already been disbursed to retired employees pursuant to earlier orders of the SHC.

About the claim of markup rate, it said that since the delay appeared to be attributable to the overall financial crisis being faced by KDA and not on account of any malafide or discriminatory conduct, the court was not inclined at this stage to grant such relief.

Published in Dawn, May 16th, 2026