IN THE SUPREME COURT OF PAKISTAN 
(Original Jurisdiction) 
PRESENT:  MR. JUSTICE MIAN SAQIB NISAR, HCJ 
MR. JUSTICE UMAR ATA BANDIAL 
MR. JUSTICE IJAZ UL AHSAN 
Human Rights Case No.11827-S of 2018  
IN THE MATTER REGARDING SELLING OF NATIONAL ASSETS 
INCLUDING PIA AT THROWAWAY PRICE. 
In attendance: 
Mr. Anwar Mansoor Khan, 
Attorney General for Pakistan 
Syed Asghar Haider, P.G. NAB 
Mr. Farid-ul-Hassan, Spl. Prosecutor, NAB 
Syed Nayyar Abbas Rizvi, Addl.A.G.P. 
Mr. Naeem Bukhari, ASC 
Dr. Musharaf Cyan, C.E.O., PIACL 
(For PIA) 
Ms. Asma Bajwa, Chief HR Officer, PIA 
Mr. Bilal Hassan Minto, ASC 
(For Mr. Shujaat Azeem) 
Mr. Umar Lakhani, ASC 
(In HRMA No.249/2018) 
Raja Ikram Amin Minhas, ASC 
(in HRMA-534/2018) 
Kh. Azhar Rasheed, ASC 
Mr. Junaid Younis, Ex. M.D. PIACL 
Mr. Nadeem Yousafzai, Ex-M.D. PIACL 
Sardar Mehtab Abbasi, Ex- Advisor to PM on 
Aviation 
Muhammad Saeed Tawana, Director Legal for 
Auditor General 
Mr. Nayyar Hayat, Ex. M. D. PIACL 
Date of hearing: 03.09.2018 
ORDER 
IJAZ UL AHSAN, J-. This matter emanates from 
an application addressed to the Chief Justice of Pakistan 
wherein serious allegations of favoritism and cronyism were 
leveled against top officials of the Pakistan International 
Airlines Corporation (PIAC). It was alleged that these officials 
were holding office without lawful authority, were bent upon 
selling national assets (PIAC) at throwaway prices, had closed 
Human Rights Case No.11827-S of 2018 �
2 
down profitable routes of the national airlines and given the 
same to other airlines, who were operating on the said routes 
and generating revenues that could have been earned by PIA 
by operating flights on these routes. In light of these 
allegations we found it expedient to take up the matter having 
come to the conclusion that it was a matter of public interest, 
involved fundamental rights of citizens and their enforcement. 
It was then fixed as Human Rights Case No.11827-S/2018 
and notices were issued to all concerned to apprise the Court 
about the affairs of the PIAC. 
2. 
In this case an application was also filed by the 
Pakistan International Senior Staff Association (PISSA) which 
was numbered as HRMA No.249/2018. PISSA challenged the 
appointment of the Chief Executive Officer of PIAC namely, 
Mr. Musharraf Rasool Cyan and other top management 
officials of the PIAC. Notices were issued on 12.04.2018 and 
vide order dated 08.05.2018 in exercise of its power to issue 
writs of quo warranto, this Court directed these top officials to 
file their respective replies so as to show, under what 
authority of law they purported to hold public offices. In 
pursuance thereof Mr. Musharraf Rasool Cyan filed a concise 
statement wherein, the procedure adopted for his 
appointment to the post of CEO of PIAC as well as his 
eligibility to hold the same was explained. 
3. 
At the very outset we may observe that for the 
purposes of issuance of a writ of quo warranto, it has been 
held by this Court in several of its pronouncements that the 
Human Rights Case No.11827-S of 2018 �
3 
person laying information before the Court need not be an 
aggrieved person. Hence, we do not feel the need to go into 
this aspect of the law as highlighted by the learned ASC for 
Mr. Cyan. The power of this Court to entertain such petitions 
and pass appropriate orders is well known, well recognized 
and settled. Reference is made to Farzand Ali v. Province of 
West Pak.  (PLD 1970 SC 98); Muhammad Naseem Hijazi v.  
Province of Punjab  (2000 SCMR 1720); and Hamdullah v.  
Saifullah Khan  (PLD 2007 SC 52). 
4. �The PIAC is a body corporate, established under 
the Pakistan International Airlines Corporation Act, 1956 (The 
Act). By way of the Pakistan International Airlines 
Corporation (Conversion) Act, 2016 the status of the 
Corporation was converted into a Public Limited Company 
incorporated under the Companies Ordinance, 1984. The 
Chairman of the Corporation as per Section 8 of the Act is 
appointed by the Federal Government and is also the Chief 
Executive of the Corporation. As a result of the Conversion 
Act, 2016, the office of the Chairman has been abolished. 
Now the post vests with the Chief Executive Officer (CEO). 
The appointment of the CEO is made by the Federal 
Government on the recommendation of the Board of 
Directors. The relevant law, under which appointments to 
Public Sector Companies such as the PIAC are made, is the 
"Public Sector Companies (Corporate Governance) Rules, 
2013" (the Rules). It is not disputed that the said rules are 
applicable to PIAC. 
Human Rights Case No.11827-S of 2018 �
4 
5. �Rule 2A of the Rules 2013 requires the 
appointments of CEO and Directors' of Public Sector 
Companies to conform to the 'fit and proper criteria' and in 
order to determine which, criteria have been spelt out. The 
appointment of the CEO however, is specifically dealt with 
under the Public Sector Companies (Appointment of Chief 
Executive) Guidelines, 2015 issued by the Securities and 
Exchange Commission of Pakistan (SECP). For the purposes 
of the instant matter we intend to confine ourselves to the 
appointment process of the CEO and to that effect the step by 
step process as required by the law (Schedule I of the 
Guidelines, 2015), is paraphrased in the table below: 
Sr. 
Steps 
Requirement 
I. 
Development of Job profile 
Developing a job description in light of the 
requirements and the 'fit and proper' criteria 
2.  
Advertisement �
for �
the 
position 
Publishing an advertisement in print media 
and posting the same on the website 
3.  
Short-listing process 
Board is to shortlist applicants from three 
sources: 
• 
Those �
shortlisted �
through 
database 
• 
Those �
who �
have �
applied 
against the advertisement. 
• 
Those �
derived �
through 
succession plan 
4.  
Evaluation of Candidates 
The �
Board �
is �
required �
to �
Evaluate �
the 
candidates on the fit and proper test and 
arrange due diligence from all the concerned 
govt. departments/agencies for e.g. SECP, 
FBR, NADRA, SBP, HEC etc 
5.  
Interviewing Process 
The �
Board �
shall �
conduct �
preliminary 
interview �
of �
the �
candidates �
taking �
into 
account numerous factors as enumerated in 
Rule 5 of the 1st Schedule 
6.  
Recommendations by the 
Board to the Competent 
Authority 
Three �
candidates �
are �
then �
to �
be 
recommended by the Board to the Ministry 
(Aviation Ministry) and if the Ministry is not 
in concurrence with any of the candidates, 
reasons should be assigned thereof and the 
Board may either re-evaluate the candidates 
from the pool of available applicants or 
reinitiate the appointment process. 
7.  
Appointment 
After concurrence of the competent authority 
the Board shall appoint the Chief Executive 
Human Rights Case No.11827-S of 2018 �
5 
6. �Step four, as is discernable from the table above, 
pertains to evaluation of the candidates on the 'fit and proper 
criteria' which is spelt out both in the Rules of 2013 as well 
as the Guidelines referred to above (2nd Schedule of the 
Guidelines, 2015). Candidates aspiring for the position of 
CEO must conform to the 'fit and proper' test. It has been so 
emphasized by the SECP through various rules, regulations, 
circulars and pronouncements as well as the law for 
appointment against top management positions of Public 
Sector Companies. Therefore, it is fundamentally important 
that evaluation of applicants for the said post, in terms 
thereof, is properly and meticulously conducted, in an 
impartial and unbiased manner. 
"Fit and Proper Criteria for Appointment as Chief Executive of a 
Public Sector Company 
1. In order to determine whether a candidate proposed to be appointed as 
a chief executive of a public sector company is fit and proper for the 
position, the following factors shall be taken into consideration: 
(1) 
Competence and capability - he must have the necessary 
skills, experience, ability and commitment to carry out the 
role efficiently and effectively. 
(2) 
Probity, personal integrity and reputation - he must 
possess personal qualities such as honesty, integrity, 
diligence, independence of mind and fairness, and has the 
ability to represent a cohesive vision and strategy to all. 
Financial integrity - he must be capable to manage his 
debts or financial affairs prudently. 
2. The Board of the public sector company shall also ensure that that the 
person is not ineligible to act as a chief executive pursuant to section 201 
read with section 187 of the Companies Ordinance, 1984. 
3. The assessment of the above criteria shall have regard to the 
considerations set out below: 
(1) Competence and Capability: 
(a) �
Competence and capability are demonstrated by a 
person who possesses the relevant competence, 
experience and ability to understand the technical 
requirements of the business, the inherent risks and 
the management process required to perform his 
role effectively as a chief executive. 
(3) 
Human Rights Case No.11827-S of 2018 �
6 
(b) 
In assessing a person's competence and capability, 
the appointing authority shall consider matters 
including, but not limited to the following: 
whether the person has the appropriate 
qualification, training, skills, practical 
experience and commitment to effectively 
fulfill the role and responsibilities of the 
position; and 
whether the person has satisfactory past 
performance or expertise in the nature of the 
business being conducted. 
(c) 
To undertake the aforesaid assessment effectively, 
the following parameters are prescribed for 
consideration: 
(i) He must 
I. �
Possess a graduate degree from a 
well-reputed institute or such other 
professional qualification relating to 
the principle line of business of the 
public sector company, including 
manufacturing, mining, science, 
technology, �
agriculture, �
social 
science, or any other field 
commensurate to the job, or 
77. �
Be a member of a recognized body of 
professional accountants, or 
Be a recognized businessman or 
professional with a postgraduate 
degree in business administration or 
public administration or finance or 
commerce or marketing or equivalent; 
and 
(ii) 
He must possess demonstrated experience 
of not less than ten years: 
I. 
in governance or business administration or 
public administration or finance or commerce 
or marketing or any other field 
commensurate to the job in significant 
organizations with a commercial orientation, 
Or 
II. 
as chief executive or at a senior management 
level in similar organizations that have 
commercial attributes, or 
III. 
at senior positions in relevant professional 
areas including, inter-alia, science, 
technology, finance, law, business, 
agriculture, social sciences, etc., or 
IV. 
in community or professional organizations; 
or 
V. 
at the level of member of governing body of a 
professional institute or as a head of 
department. 
(2) Probity, Personal Integrity and Reputation: 
(a) �
Probity, personal integrity and reputation are values 
that are demonstrated over time. These attributes 
Human Rights Case No.11827-S of 2018 �
7 
demand a disciplined and on-going commitment to 
high ethical standards. 
(b) �
In assessing a person's level of probity, integrity 
and reputation to hold a position of a chief 
executive, the appointing authority shall consider 
matters including, but not limited to the following: 
whether the person is or has been subject to 
any adverse findings or any settlement in 
civil/ criminal proceedings particularly with 
regard to investments, formation or 
management of a company or body 
corporate, or the commission of financial 
business misconduct, fraud, financial crime, 
default in payment of taxes or statutory 
dues, etc.; 
(ii) 
whether the person is or has been 
removed/ dismissed in the capacity of an 
employee, director/ chairman or from a 
position of trust, fiduciary appointment or 
similar position because of issues arising on 
account of his misconduct; 
(iii) 
whether the person is or has, directly or 
indirectly, i.e. through his spouse or minor 
children, been engaged in any business 
which is of the same nature as and directly 
competes with the business carried on by 
the company of which he is the chief 
executive or by a subsidiary of such 
company; 
(iv) 
whether the person has contravened any of 
the requirements and standards of a 
regulatory body, professional body, 
government or its agencies; 
(v) 
whether the person, or any business in 
which he has a controlling interest or 
exercises significant influence, has been 
disciplined, suspended or reprimanded by a 
regulatory or professional body, a court or 
tribunal, whether publicly or privately; 
(vi) 
whether the person has been engaged in 
any business practices which are deceitful, 
oppressive or otherwise improper (whether 
unlawful or not), or which otherwise reflect 
discredit on his professional conduct; 
(vii) 
whether the person has been associated as 
a partner or director with a company, 
partnership or other business association 
that has been refused registration, 
authorization, membership or a license to 
conduct any trade, business or profession, or 
has had that registration, authorization, 
membership or license revoked, withdrawn 
or terminated; 
(viii) 
whether the person has been a director, 
partner or chief executive of any company, 
partnership or other business association 
which is being or has been wound up by a 
court or other authority competent to do so 
within or outside Pakistan, or of any 
licensed institution, the license of which has 
been revoked under any law; 
Human Rights Case No.11827-S of 2018 �
8 
whether the person is free from any 
business or other relationship which could 
materially pose a conflict of interest or 
interfere with the exercise of his judgment 
when acting in the capacity of a director or 
chief executive or member of a governing 
body which would be disadvantageous to 
the interest of the public sector company; 
and 
(x) �
whether the person is a Pakistani citizen or 
a foreign national or both. 
(3) Financial Integrity: 
(a) �
Financial integrity is demonstrated by a person who 
manages his own financial affairs properly and 
prudently. 
(b) �
In assessing a person's financial integrity, the 
appointing authority shall consider all relevant 
factors, including but not limited to the following: 
whether such person's financial statements 
or record including wealth statements or 
income tax returns or assessment orders are 
available; 
(ii) 
whether the latest Credit Information Bureau 
report of the person shows no overdue 
payments or default to a financial institution; 
Provided that such a person will be treated 
as a defaulter if he has failed to repay his 
loan exceeding one million rupees to a 
financial institution or is a defaulter of a 
stock exchange. 
(iii) 
whether the person has been and will be 
able to fulfil his financial obligations, 
whether in Pakistan or elsewhere, as and 
when they fall due; and 
(iv) 
whether the person has been the subject of a 
judgment debt which is unsatisfied, either in 
whole or in part, whether in Pakistan or 
elsewhere. 
(c) �
The fact that a person may be of limited financial 
means does not in itself, affect the person's ability 
to satisfy the financial integrity criteria. 4. While 
making appointment of chief executive to a public 
sector company, the appointing authority shall 
conform to a merit-based selection procedure and 
shall also give due consideration to the following: 
(a) 
Sectoral expertise 
(b) 
Organizational awareness; 
(c) 
An understanding of the role of the 
government as a shareholder; 
(d) 
Financial literacy and business acumen, 
irrespective of the professional background; 
(e) 
A knowledge of the statutory responsibilities 
of a chief executive; 
The capability for a wide perspective on 
issues; and 
(g) �
Leadership qualities." 
Human Rights Case No.11827-S of 2018 �
9 
7. 
In addition to the criteria for appointment of CEO 
the Rules 2013 provide for the Responsibilities, powers and 
functions of the Board of Directors of a public limited 
company. It is clear from the language thereof that the Board 
owes the company and its stakeholders a fiduciary duty, 
performance whereof is solely for the best interests of the 
company. Rule 5(2) makes the Board responsible for the 
planning, succession and appointment of the Chief Executive 
of the company and in doing so it has to evaluate the 
potential candidates on the 'fit and proper criteria' as 
reproduced above. It cannot be over emphasized that in 
undertaking such evaluation, the board must act 
independently, transparently and in a totally impartial and 
unbiased manner so as to select the best and most suitable 
candidate purely and strictly on merit. 
8. 
Apart from informing the stakeholders of all the 
material events the Board has been mandated to create a 
`code of conduct' for functioning of the Board as well as all 
senior and/or junior management of the company. Strict 
compliance with the fundamental principles of probity, 
propriety, objectivity, integrity and honesty has been cast 
upon the Board so as to make sure that the public assets are 
not plundered or that no situation entailing a conflict of 
interest catering to personal benefit, or vested or political 
interest arises. To this end all the directors are required to 
declare their interests in the shape of a 'register of interests' 
coupled with a declaration to the effect that they would not 
Human Rights Case No.11827-8 of 2018 �
10 
accept any compensation, remuneration or other benefits in 
any shape or form, on any account, apart from the 
remuneration that they receive from the company. The Board 
is also required to formulate policies to minimize corruption, 
identification and monitoring of risks, procurement of goods 
as well as services, including but not limited to acquisition of 
assets along with disposal of these assets and other 
investments. Even the services rendered by the company as a 
public service obligation have to be quantified whereafter 
appropriate compensation is requested from the Government. 
9. 
In the above backdrop, we have carefully 
examined the process and various stages which Mr. Cyan's 
appointment went through or ought to have gone through 
under the law and did not. We also directed Mr. Cyan and his 
counsel to define and justify his appointment. He was 
specifically confronted with the allegations and given ample 
opportunity to explain the deviations from law and procedure 
which had prima facie occurred in the process of his 
appointment. 
10. 
The irregularities and illegalities in the 
appointment of Mr. Cyan, as alleged in HRMA No.249/2018 
and the replies thereto given by Mr. Cyan, are reproduced in 
the table below: 
Allegations 
Reply of Mr. Cyan 
Mr. Cyan was a staff officer of 
Mr. Mehtab Abbasi (Advisor to 
PM on Aviation) in 1998 and 
was granted undue favour 
Denied that he was appointed at the behest of 
Mr. Abbasi 
He has no aviation industry 
experience �
and �
his �
basic 
degree is MBBS. 
Denied that his basic degree is MBBS. 
PIA, the national airline of Pakistan, Is implementing. Its focused revive/ strategy to steer the company on path of growth and success. 
The airline requires a highly experienced, dynamic and passionate professional with strong operational, financial end commercial acumen 
to be hired as a full time Chief Executive on contract basis. The Chief ENCCUtkat position shall be the Fecal position to implement the 
turnaround strategy for the national carrier. 
The Meal candidate IS required to share a passion for reshaping Pit  and bring It to stand in the league of rigger national airlines. The 
selected person-shall be required to develop and lead a major Change Management Program re address PIACI. financial, operational, 
commercial end cultural turn-around including goidIng and motivating its people to deliver their best performance, as a team. • 
The sucsessiul candidate will also be expected to hove excels/int people management and communication skills with a 'cantles' attitude. 
CHIEF EXECUTIVE 
a. 
EDUCATIONAL QUALIFICATIONS: 
I- Possess a graduate degree from a well-reputed institute or 
such other, professional qualification relating to the principle 
,Tine of aviation business. 
oil 
ills De a recognized OusineSsman or professional with a 
,Postgraduate degree in Business Administration or Public 
Administration or Finance or Commerce or Marketing at 
equivalent from any recognised institute. 
b. WORK EXPERIENCE: 
Minimum 25 years of working experience preferably in 
international airlines of repine. with minimum of 10 years 
experience in a senior professional position in relevant 
protessionaf areas Including intenalla, .sdence, technology, 
finance. law, business, social sciences etc. Having an esmblisited 
worldwide network in Airline industry. 
c. 
SKILLS / SPECIAL REQUIREMENTS: 
• Strategic Management 
• Professional liminess Skills 
• Leadership Qualities 
• Vision to steer the omariPation towards success antigrowth 
d. PROFESSIONAL TRAINING / COURSES: 
• Strategic Management 
• Leadership Qualities 
• People Management & Delegation 
• Problem Solving & Decision Making 
C. JOB DESCRIPTION & RESPONSIBILITIES: 
• Envision, lead and encourage the efforts ofentire organiZarion 
towards achieving overall business objectives. Responsible 
for devising corporate strategies, formulating growth Mans 
and enswing maximum returns for alt stakeholders. 
Laying a foundation to achieve long terms benefits through 
strategic policy making and continuous improvement for 
future development of organization. Ensure that the 
objectives of the organization. as agreed by the board. are 
fully, promptly anti properly implemented. 
• Shaping organizational activities and utilising•full potential 
of ad employees to attain blithest Standards of acevice at 
all levels. Creating a rengentat and user friendly work 
environment for all employees of the organization. 
• Fostering a culture of employee best practices. work ethics 
and zero tolerance for corruption. Aliening established 
policies, procedures and work practices to achieve 
effectiveness and efficiency in all areas. 
• Allocation of funds / capital to organisations priorities 
and ensere that the necessary firranciat and operational 
data are made available for the annual.report and its 
external audit. 
L. OPERATIONAL RESPONSIBILITIES: 
Establish roles for the top layer of the organisation covering 
duties, responsibilities and recourses. Develop a skilled and 
capable top.management seam. Develop and implement 
a Strategy to attract and retain existing and potential 
business. Propose long term operational and corporate 
growth plans covering the development of routes, fleet. 
major facilities and revenue. 
• Indoctrinate systems leading to the production of detailed . 
plans and allocated budgets for business units and 
supporting functions that are required throughout the 
network 
• To be fully aware of all safety and service quality requirementt, 
and to he responsible for the outcomes and findings of alt 
Internal & external safety/quality audits_ 
• To ensure effective functioning of liSECt Steering and Working 
Committees. Assume responsibility for recording end 
reporting of all occupational hazards, accidents, Incidents, 
neat miss -cases to the concerned agencies as per the 
Management approved system procedure. 
0. EXTERNAL RESPONSIOILITIES: 
• Develop and maintain the reputation and image of the 
corporation In official, financial and public circles and 
represent PIACL at official functions. Also develop and 
maintain relationships with interfacing envernment 
departments. Civil Aviation Authority and otherinternationet 
and domestic orfmnIzationsfagencies at senior management 
level for obtaining bilateral agreements and other 
facilities/services. 
• Ensure adequate representation at International Cell Aviation 
Organisation (ICAO) anti International Air Transport 
Association (IATA) meetings. Ensure that PIACI. interest,. 
are appropriately represented on the platforms of lobt 
venture or subsidiary companies and high image of PIACI. 
at all rnedia forms. 
h. PAY PACKAGE 
• 
Successful candidate will be offered market based salary and 
Binge benefits. 
NOTE: 
• The position is merit based 
• The Selected candidates will be given employment on contract hags for a period of two (2) years. which may be extended. 
• The applicant shall be required to complete and sign Application Fenn (available on PIA websee) and furnish detailed CV. However at 
the time of interview the eligible candidate will be required to brine original A photocopies of the degrees / testimonials duly verified 
by the Higher Education Commission orthe professional hotly or association, whichever is relevant. 
• The applicant shall also submit a declaration on a non-judicial stamp paper of niquIsIte value (available on PIA webslte) that he is not 
ineligible to act as a Chief Execut Ks% in accordance with the prevision of the ordinance and the rules. 
• The application must reach at the following address not later than 15 days from the date of publication of this advertisement. 
APPLICATION PROCEDURE/GUIDELINES: 
Applications are-Invited on the prescribed FORM available (free of Cost) from the PIA Recruitment & Placement Office at Karachi, and from 
other PIA Offices in different stations besides being available on PIA's websltoi www.plac.aaro/careers 
Interested candidates should send their application forms along with the said declaration, CV, national identity card and 02 recent passport 
site photographs accompanied by Pay Order of Memos 1000/- (non.refondable) in the name Of PIAC (PIA NTN No. 080.3450-B) through 
courier to the following address not later than 15 days from the date of publication of this advertisement 
MANAGER RECRIJITME.NT A PLACEMENT, 
NEAR PIA TRAINING CENTER. KARACHI AIRPORT 75200 
Email: jobs@plac.aero  Cosset. No.021-99044295 
.• �
• 
www.placaercs 
/PekThwumnesriniorindatypt 
UANO) 402-21-1111,7861.705. 
Human Rights Case No.11827-S of 2018 �
11 
Dispute regarding age of Mr. 
Cyan �
as �
his �
matriculation 
certificate �
shows �
one �
DOB 
whereas �
the �
CNIC �
reflects 
another 
A suit for declaration has been filed by him for 
correction of the DOB on the Matriculation 
certificate which is pending adjudication 
Mr. Cyans' appointment is in 
violation �
of �
the �
PSC 
(Corporate Governance) Rules, 
2013 
Simply stated that his appointment is in line 
with the relevant law, rules & guidelines. 
Salary �
of �
Mr. �
Cyan �
is 
exorbitant and not in line with 
others holding the same posts 
The same had been approved by the Board and 
comparatively, is lower than CEOs' of other 
PSCs' 
1 1 . �The starting point of Mr. Cyan's appointment was 
the advertisement dated 20.05.2017, published by the PIAC 
for appointment of the CEO. Educational qualification and 
work experience, as required by the advertisement were: 
Human Rights Case No.11827-S of 2018 �
12 
12. �It is essential that suitability and eligibility of a 
candidate is ascertained through an objective procedure and 
appointment thereof needs to have a nexus with the object of 
the job. This principle was laid down by this Court in 
Muhammad Yasins case' in the following terms: 
"36. To test the validity of the appointment process in this case, it would 
be useful to adopt a test based on the following considerations: 
(a) whether an objective selection procedure was prescribed; 
(b) if such a selection procedure was made, did it have a reasonable nexus 
with the object of the whole exercise, i.e. selection of the sort of candidate 
envisaged in section 3 of the Ordinance; 
(c) if such a reasonable selection procedure was indeed prescribed, was it 
adopted and followed with rigour, objectivity, transparency and due 
diligence to ensure obedience to the law." 
We find that the antecedents of Mr. Cyan are lacking on all of 
these counts. As per the Curriculum Vitae (CV) of Mr. Cyan 
(HRMA No.403/2018) provided by him in his concise 
statement, his basic degree is MBBS. Before being appointed 
as the CEO of PIAC, Mr. Cyan was working as a Research 
Assistant in Georgia State University where he had received 
his Ph.D degree in Economics. No educational qualification 
worth anything relating to the Aviation Industry (as required 
by the advertisement) was possessed by him. The only 
relevant qualification shown by him in this regard pertains to 
a one-month Corporate Aviation Management course, shown 
to have undertaken from May 2017 till June 2017 i.e. the 
time around which the advertisement was floated. This is 
obviously of no help to Mr. Cyan's case. It shows a desperate 
1  Muhammad Yasin Versus Federation of Pakistan [PLD 2012 SC 132] 
Human Rights Case No.11827-S of 2018 �
13 
attempt at "window dressing" a candidate whose qualification 
for the job was seriously deficient. 
13. 
As far as his work experience is concerned the 
same is also not in line with what had been required by the 
advertisement for the post of CEO of a company in the 
aviation business which happened to be the national flag 
carrier of Pakistan. It is noteworthy that PIAC for which a 
CEO was being appointed had been running in huge losses. It 
had to be rescued, restructured and overhauled by the 
Federal Government at great public expense. He had no 
experience whatsoever in the aviation industry let alone in 
salvaging companies which were in dire financial trails which 
fact is discernable from the Employment application as well 
as the CV attached by Mr. Cyan in his concise statement. In 
Asraf Tiwanas case2  this Court while dealing with a similar 
issue, examined the issue of verification of CVs in the 
following manner: 
"Once again there is nothing at all on the record and there was 
no submission made by learned counsel for the respondents which 
would show that any inquiry let alone due diligence was 
undertaken to ascertain the correctness or otherwise of the 
contents of the CVs. So much so, even the most cursory exercise to 
verify such contents from any source mentioned in the CVs, was 
not attempted by the Government. In the absence of such due 
diligence, we are clear that it would be impossible to ascertain 
objectively the qualifications of recommendees in the Summary as 
to integrity, expertise, experience and eminence etc. as required by 
section 5(1) of the Act." 
14. 
After the process of advertisement the next logical 
step for a valid and lawful appointment is the short-listing 
process which is to be conducted by the Board. Mr. Cyan 
claimed to have been shortlisted by a duly constituted 
2  Muhammad Ashraf Tiwana Versus Pakistan & Others [2013 SCMR 1159] 
Human Rights Case No.11827-5 of 2018 �
14 
"Selection Committee". As a matter of fact the self-styled 
committee that shortlisted him consisted of the 
Chairman/ Secretary (Mr. Irfan Ellahi), Mr. Tariq Pasha and 
Mr. Mahtab Abbasi, the then Advisor on Aviation to the Prime 
Minister who was a stranger to the Board or any Committee 
constituted by it. It is clear and obvious to us who 
handpicked this committee and why. Neither Mr. Abbasi nor 
the learned counsel for Mr. Cyan has denied that Mr. Abbasi 
was indeed a member of the Committee that short listed Mr. 
Cyan, and participated in its meetings. It has however been 
urged that he was just an observer and did not participate in 
its deliberations. We are neither convinced by the said 
explanation nor are we willing to believe the same. It is settled 
law that the presence of a stranger in a Board Meeting vitiates 
the entire proceedings specially so when the stranger is in a 
position of strength and can influence the outcome of the 
proceedings. In the instant case, the constitution, working 
and membership of this supposed 'Selection Committee' was 
ex facie a highly questionable and dubious exercise in itself. It 
does not figure anywhere in the Law nor in the Rules or 
Guidelines. In such circumstances "The Court has also to see 
if statutory provisions have been violated in making the 
appointment. The invalidity of appointment may arise not only 
from want of qualifications but also from violation of legal 
provision for appointment. "3  
3  Muhammad Naseem Hijazi Versus Province of Punjab [2000 SCMR 1720[ 
Human Rights Case No.11827-S of 2018 �
15 
15. 
The importance of following the specific criteria for 
appointment provided by the Statute has been elaborated by 
this Court in Ghulam Rasools case4  where it was held that 
"the matter of appointment of heads of statutory bodies, 
autonomous/semi-autonomous bodies, corporations, regulatory 
authorities etcetera are governed under specific statutory 
provisions which cannot be overlooked or substituted by some 
other mechanism. We have noted that various Acts/ Ordinances 
lay down a specific criteria/ qualifications for high-level 
appointments and empower the Federal Government to make 
such appointments". 
16. 
Moreover, Mr. Cyans' statement that the meeting 
was attended by two Board Members too is contrary to the 
record as one Member of this Selection Board was Mr. Mehtab 
Abbasi, Advisor to the Prime Minister for Aviation as is 
expressly stated in the Board of Directors Minutes of 13th 
Meeting held on 07.07.2017 for appointment of the CEO. To 
say that the Advisor to the then Prime Minister was an 
innocent onlooker, did not participate in the meeting nor 
exercised any influence despite his association with Mr. Cyan, 
boarders on naivety. 
17. 
In addition to the grave illegalities pointed out 
above there is nothing on record to show that necessary due 
diligence as per the evaluation requirements of candidates 
qua the PSC Guidelines, 2015 was undertaken by the Board. 
4  Ghulam Rasool Versus Govt. of Pakistan [PLD 2015 SC 6] 
Human Rights Case No. 11827-S of 2018 �
16 
There is no record of the workings of the so called 'Selection 
Board' and whether in evaluating Mr. Cyans' eligibility, the 'fit 
and proper' criteria was adhered to. Also, had the due 
diligence been conducted as per the PSC Guidelines, 2015, 
the discrepancy of Mr. Cyans' date of birth would have come 
to fore. We are surprised to note that In contravention of the 
PIAC manual, instead of asking Mr. Cyan to follow the 
prescribed procedure, an affidavit was obtained from him to 
the effect that the date of birth in the computerized national 
identity card (CNIC) was correct as opposed to the other 
record. The said discrepancy was condoned as a special 
favour and in violation of the procedure consistently followed 
by PIAC. 
18. 
No interview of Mr. Cyan was conducted by the 
Board as required by the Guidelines. This fact is corroborated 
by the Minutes of the 14th Meeting of the Board of Directors 
where two of the Members of the Board objected to the 
selected candidate as they were denied the opportunity to 
shortlist and interview the candidates, but to no avail. The 
candidate ear marked for selection by those who were calling 
the shots had already been selected and the board was to be 
used as a rubber stamp only. 
19. 
After the so-called and illegal short-listing PIACL 
requested the Aviation Division, vide letter dated 21.07.2017, 
for onward submission of names of candidates to the Federal 
Government. The letter of the PIAC Chief Human Resource 
Officer dated 21.07.2017 is available on record. However, 
Human Rights Case No.11827-S of 2018 �
17 
neither the summary sent by the Aviation Division to the 
Prime Minister is appended nor the actual approval is 
available on record. The approval was however communicated 
to PIAC vide letter of the Aviation Division dated 10.08.2017 
whereas the approval accorded by the Cabinet Division was 
given on 22.08.2017. On this score alone, the appointment of 
Mr. Cyan is ex facie contrary to the law as elucidated by a 
pronouncement of this Court in the case of Mustafa Impex 
Versus Government of Pakistan 85 Others JPLD 2016 SC  
8081. 
20. 
Furthermore, the contract period as provided in 
the advertisement was 2 years (further extendable). The letter 
of appointment issued to Mr. Cyan also stipulated a 2 year 
contract. The contract appended with the concise statement 
of Mr. Cyan too, reflects that it was for a period of 2 years 
extendable to another 2 years. In stark contrast to the same, 
the terms of the contract were unauthorizedly and 
unilaterally changed by the Board of Directors to 3 years vide 
minutes of the 19th Meeting held on 08.02.2018. This is 
clearly contrary to the policy of the government as well as the 
advertisement, published in the newspapers inviting 
applications from candidates for appointment against the 
post of CEO of PIA. 
21. 
We had directed the Auditor General of Pakistan 
to conduct an independent audit of the affairs of PIAC. 
Independent confirmation of the abovementioned gross 
illegalities has been done by the Auditor General of Pakistan 
Human Rights Case No.11827-S of 2018 �
18 
in his preliminary report. In addition to the irregularities 
highlighted above, misuse of corporate resources was also 
highlighted by the Auditor General Pakistan (AGP). It has 
been recommended by the AGP that: 
• �
The Employment of Mr. Cyan be terminated without 
delay; 
• 
Immediate recovery of salary and emoluments be 
initiated; and 
• 
The case be referred to independent agency to probe 
the external pressure applied by the Advisor to the 
PM on Aviation, namely Mehtab Abbasi, in 
effectuating this irregular appointment. 
We are therefore, in no manner of doubt that Mr. Cyan was 
selected in an arbitrary, illegal and unfair manner which was 
clearly in violation of law and the rules. The rules and 
regulations were ignored, the Board of Directors was virtually 
bypassed by using it as a mere rubber stamp and the 
candidate who enjoyed the goodwill of a politically strong and 
well placed individual was hoisted at the head of a very large 
government Corporation worth billions of rupees, which he 
was not qualified to run. The result is not surprising. A 
Corporation and a national asset which was already running 
into huge losses, is in dire straits and on the verge of 
collapse. We find this to be the worst form of cronyism at 
public expense without any regard to the interest of the 
institution or the people of Pakistan who have the largest 
stake in their national airline. 
22. �Selection of persons to be appointed against senior 
positions bereft of merits has been frowned upon by this 
Court in the past, which went on to observe in Ashraf 
Tiwanas case supra that "We wish to add that issues of 
Human Rights Case No.11827-S of 2018 �
19 
appointments to senior positions in public bodies, which have 
been highlighted in this petition and in other cases which have 
come up before us, have under-scored the need for a 
transparent, inclusive and demonstrably fair process for the 
selection of persons to be appointed to such senior positions. 
The Federal Government may consider the necessity of putting 
in place independent mechanisms and of framing open, fair 
and transparent processes so that the objectives for which 
public bodies are established can be efficiently achieved and at 
the same time the pernicious culture of arbitrariness, 
favouritism and nepotism is eliminated." 
23. 
Unfortunately and regrettably favouritism and 
cronyism was allowed to prevail over merit and competence 
and a national asset was treated like a personal fief. 
24. 
Until and unless strict compliance with the 
provisions of the statute and rules governing appointment to 
these senior positions are adhered to in letter and spirit, such 
appointments will always be subject to challenge on the 
ground of arbitrariness and non-compliance with the law and 
settled principles. It cannot be stressed enough that the 
Board of Directors is a body that owes a fiduciary duty to the 
stakeholders of the company and its role, as explained above, 
is not of a mere by-stander. The role of the Board envisaged 
by law is central and pivotal, and has clearly been articulated 
in the Rules, 2013 whereby the Board has an active duty to 
safeguard the rights of its stakeholders. Such duty needs to 
be performed by employing independent and honest 
Human Rights Case No.11827-S of 2018 �
20 
individuals with training and experience in the relevant field, 
with the highest level of integrity, probity and honesty. 
25. �Personal bias, political affiliations and a lack of 
empathy displayed by those mandated to make these 
appointments defeat all ideals, hopes and mechanisms of 
good governance in place. In Ashraf Tiwanas case this Court 
has encapsulated this entire problem as follows: 
"It has by now become well settled that Courts will look into the 
process of appointments to public office. It is the process which can 
be judicially reviewed to ensure that the requirements of law have 
been met. In the case of Muhammad Yasin supra, the process of 
appointment to public office has been made the subject of judicial 
review to ensure adherence to the command of the law. This is also 
a requirement of good governance and has been a subject of 
comment from ancient times. Abu al-Hassan al-Mawardi (d. 1058 
A.D), the famous scholar from Baghdad devoted a substantial 
portion of his 11th century treatise on constitutional law, the al-
Ahkam al Sultaniyyah, to the qualifications for holding public 
office. These are universal principles of good governance and are 
reflected in sections 5 and 6 of the Act which lay down stringent 
criteria for the kind of person the Federal Government may appoint 
as Commissioner/ Chairman SECP. Section 5(1) of the Act specifies 
that a Commissioner "shall be a person who is known for his 
integrity, expertise, experience and eminence in any relevant field, 
including the securities market, law, accountancy, economics, 
finance, insurance and industry." Under the law, the federal 
Government has the authority to appoint the Chairman and 
Commissioners of SECP. The Federal Government, however, has no 
absolute and unbridled powers in this behalf. It is constrained by 
the aforesaid requirements of the Act. We have come a long way 
from the days of the whimsicality of Kings and Caesers, such as 
Caligula who could conceive of appointing his horse Incitatus as 
Consul of Rome. The element of subjectivity and discretion of the 
Government has been severely limited by the legal requirement 
that an appointee �
must be a person having integrity, expertise, 
eminence etc. This requirement imposes a duty on the Federal 
Government to put in place a process which ensures that the 
requirements of the law are met." 
We note with regret that clear, unambiguous and unequivocal 
pronouncements by this Court on these issues have fallen on 
. Human Rights Case No.11827-S of 2018 �
21. 
deaf ears and no heed has been paid to the same which has 
Ted to disastrous and cataclysmic consequences. PIAC is a 
grim example of the same. 
26. �Above are the detailed reasons for our short order 
of even date. The same for ease of reference is reproduced 
below:- 
"For the reasons to be recorded later, we, inter 
alia, hold that Mr. Musharraf Rasool Cyan, the Chief 
Executive Officer (CEO) of Pakistan International Airlines 
Corporation Limited (PIA) was not qualified to be appointed 
on such post. Besides, the procedure adopted for his 
appointment does not conform to the law and rules on the 
matter. As a consequence whereof, this application is 
allowed and his appointment is set aside with immediate 
effect. The Federal Government is directed to take necessary 
steps to appoint a new CEO of PIA strictly on merit and in 
accordance with law." 
C.M.A. No.5566 of 2018 in S.M.C. No.23 of 2018:- 
26. 
As the main case, i.e. S.M.C. No.23 of 2018 
has already been disposed of vide order dated 30.06.2018, 
therefore this application has lost its relevance and is 
accordingly disposed of. 
H.R.M.A. No.534 of 2018:- 
27. 
Learned counsel wants to withdraw this 
application. Dismissed as withdrawn. 
ISLAMABAD, THE 
3rd of September, 2018 
ZR/* 
NOT APPROVED FOR REPORTING 
. AA*. 
