Judgement

THAKKAR, J.:- A CAT - scan of this appeal reveals three problems, viz :-

I. Whether a rule or regulation framed by a public sector undertaking which is an authority under the control of Government of India and is a State within the parameters of Article 12 of the Constitution of India empowering the employer to terminate the services of an employee by giving notice of the prescribed period or payment of salary for the notice period in lieu of such notice is constitutional?

II. If it is unconstitutional, whether the employee whose services are terminated under the said rule or regulation is always and invariably entitled to reinstatement? Whether option to pay compensation in lieu of reinstatement can be given to the employer in fit cases?

III. What would be the appropriate amount to be reasonably awarded in lieu of reinstatement?

2. These are the questions which call for answers in this appeal. (By Special Leave arising out of W. P. No. 2329 of 1984 dismissed by the High Court of Delhi summarily by its order dated 26-9-1984).

3. Undisputed are the following facts, the same being incapable of being disputed:-

(1) The respondent Corporation (I. T. D. C.) is State within the param