JUDGMENT

Shivaraj V. Patil, J.-Delay condoned.

2. Leave granted

3. The facts that are not in dispute are that the appellant was appointed as Assistant District Manager in M.P. State Commodities Trading Corporation Limited, Indore (the respondent herein) by order No. 4383 dated 10.9.1980. As per the terms of the appointment, the services of the appellant could be terminated on one month s notice or on payment of one month s salary in lieu of notice by either side. The respondent is a Government company within the meaning of Section 617 of the Companies Act, 1956. The respondent by order dated 11.5.1981 terminated the services of the appellant with effect from 11.6.1981. The notice for termination was served on the appellant on 8.6.1981 and he was relieved on 10.6.1981. The appellant was not paid one month s salary also.

4. Faced with the situation, the appellant filed a suit for declaration that the order terminating his services was illegal and that he be treated as continuing in the service of the respondent contending that the order of termination of services was in contravention of the terms of employment.

5. The respondent resisted this suit on the ground that the relationship betwe