Judgment

Mrs. Sujata V. Manohar, J.-Leave granted.

2. The appellant was appointed as Assistant Manager in the respondent-U.P. State Leather Development and Marketing Corporation on 22.11.1974.

3. On 10th of January, 1978 the appellant was selected and appointed as Divisional Manager in the respondent-Corporation. The letter of appointment which is dated 10th of January, 1978 states as follows:-

“...............

His appointment will be on probation for a period of one year which can be extended at the discretion of the Managing Director. His serv­ices are liable to be terminated on one month’s notice or salary in lieu thereof. He will be governed by the Service Rules of the Corpora­tion........”

4. The appellant continued to work as Divisional Manager of the re­spondent-Corporation till 21st of April, 1981 when he was re-designated as Works Manager. He continued thereafter in the said post. In April 1983 he was allowed to cross the Efficiency Bar.

5. It is the contention of the respondent that initially the work of the appellant was good but subsequently his work and performance deteriorated as a result of which the Corporation had to suffer loss­es. The appellant was given several warning