JUDGMENT

BHAGWATI, J.:— This is an appeal by special leave directed against a judgment of the Patna High Court quashing and setting aside the termination of service of the 1st respondent and directing that the 1st respondent shall continue in service until he reaches the age of 62 years. The facts giving rise to the appeal are few and may be briefly stated as follows.

2. The 1st respondent was appointed Professor of Surgery in the Magadh Medical College, Gaya in Dec. 1975 and he joined his post as Professor of Surgery on 27th Dec. 1975. The letter of appointment which set out the terms and conditions of service provided that the appointment would be subject to such regulations as might be in force from time to time in the Magadh University to which the Magadh Medical College was affiliated. These regulations provided that the age of superannuation shall be 62 years, and, therefore, the 1st respondent was entitled to continue as Professor of Surgery until he reached the age of 62 years. But in or about the middle of 1976 a. drastic change took place, as the Bihar Private Medical Colleges (Taking Over of Management) Ordinance, 1976 (hereinafter referred to as the Ordinance) was promulgated by the Governor of Bihar authorising the State Government by a notification to take over the management of any private Medical College and to exercise such functions of management in regard to such College as might be specified in the notification. Pursuant to the Ordinance a notification was issued by the State Government taking over the management of the Magadh Medical College with effect from 1st July, 1978. The Ordinance was subsequently replaced by the Bihar Private Medical Colleges (Taking Over) Act, 1978 (hereinafter referred to as the Act). Section 3 of the Act provided for taking over of private Medical Colleges and it read as follows :-

"3, (1) The State, Government may, by a notified order, and from the date mentioned therein, take over a College and the management and control thereof shall thereupon be exercised by the State Government in such manner as may be laid down in the said Order;

(2) All the assets and properties of the college and the College body whether movable or immovable including lands, buildings, workshops, stores, instruments, machinery, vehicles, cash balance, reserve fund, investments, taxes, furniture and others shall, on the date of take over, stand transferred to and vested in, and be deemed to have come into the possession of the State Government;

(3) All the liabilities and obligations of the College under any agreement or contract entered into bona fide before the date of taking over shall devolve and shall be deemed to have devolved on the State Government."

Section 6 dealt with the determination of terms of teaching staff and other employees of the Medical College taken over by the State Government and since the controversy in the present case has turned, almost entirely upon the true meaning and effect of the provisions of this section, it would be convenient to set it out in full :

"6. Determination of terms of the teaching staff and other employees of the College - (1) As from the date of the notified order, all the staff employed in the College shall cease to be the employees of the College body :

Provided that they shall continue to serve the College on an ad hoc basis till a decision under sub-secs. (3) and (4) is taken by the State Government.

(2) The State Government will set up one or more Committees of experts and knowledgeable persons which will examine the bio data of each member of the teaching staff and ascertain whether appointment, promotion or confirmation was made in accordance with the University Regulations and in keeping with the guidelines laid down by the Medical Council of India and take into consideration all other relevant materials including length of service in the College, and submit its report to the State Government.

(3) The State Government on receipt of the report of the Committee