ORDER

The respondent had been appointed as General Manager (Finance) under Andhra Pradesh State Federation Cooperative Spinning Mills Ltd. for a period of 3 years with effect from 6.8.1991. While he was continuing as such, his services stood terminated on 10.6.1993. He, therefore, approached the High Court of Andhra Pradesh by filing a writ petition under Article 226 of the Constitution. The learned Single Judge dismissed the writ petition at the admission stage itself, though after hearing the employer. The learned Single Judge came to the conclusion that the order of termination being innocuous, it cannot be held to be penal in nature and termination of service is in accordance with the contract of service, since 3 months salary in lieu of 3 months notice had been paid. The respondent then approached the Division Bench. The Division Bench of Andhra Pradesh High Court allowed the appeal by the impugned judgment in Writ Appeal No. 1071 of 1993. The Division Bench came to the conclusion that a writ would lie against the Andhra Pradesh State Federation of Cooperative Spinning Mills Ltd. as it would be a State within the meaning of Article 12 of the Constitution. It also held that th