JUDGMENT

KULDIP SINGH, J.:— S. P. Dubey, employed with the Madhya Pradesh State Road Transport Corporation, was retired from service on his attaining the age of 58 years. He claims that the age of superannuation was 60 years and as such his retirement at 58 was illegal.

2. We may state the necessary facts. Dubey joined service as a junior clerk with the Central Provinces Transport Services Limited (hereinafter called the company) in the year 1947. The Board of Directors of the Company by a resolution dated July 30, 1954 fixed the age of superannuation of all its employees except the drivers as 60 years. The company was purchased and taken over by the State of Madhya Pradesh by a notification dated August 31, 1955. The relevant part of the said notification is as under:

"The undertaking will as from the 31st August, 1955 be entitled. The Central Provinces Transport Services (under Government Ownership)". So far as the public is concerned there will be no change or Interruption in the course of business and the continuity of operation will not be disturbed and the existing staff will not be adversely affected with regard to terms and conditions of their services. The statutory instrument to be made in due course will provide, among other things that all the rights and liabilities of the Central Provinces Transport Services Ltd. will become the rights and liabilities of the Central Provinces Transport Services (Under Government Ownership) and from a legal point of view the staff, customers and contractors can look to the Central Provinces Transport Services (Under, Government ownership) to discharge all the obligations and exercise all the rights that at present rest with the Central Provinces Transport Service Ltd., Rules for the conduct of business by the above constituted Board of Management are being published separately."

3. It is thus obvious that the Government continued to maintain the Central Provinces Transport Services as a separate entity. The conditions of service, of the staff of the taken over company, were specifically protected.

4. The State of Madhya Pradesh was reorganised under the States Reorganisation Act, 1956. The Central Government, by a notification dated February 28, 1961, extended the provisions of Road Transport Corporations Act, 1950 (hereinafter called the Act) to the State of Madhya Pradesh with effect from April 1, 1961. Thereafter the Madhya Pradesh Government acting under S.3 of the Act established the Madhya Pradesh State Road Transport Corporation (hereinafter called Corporation) with effect from May 21, 1962. The Madhya Pradesh Government issued two memorandums on May 4, 1962. By one memorandum the services of the concerned employees including Dubey were transferred to the Corporation and by the second it was clarified that the said transfer was subject to the conditions that their service would be treated as uninterrupted and their pay scales and conditions of service would not be affected. On the same day the Board of Directors of the Corporation passed a resolution to the following effect :

"Resolved that the services of the employees employed under M.B.R. and C.P.T.S on 31-5-1962 are transferred to the Corporation temporarily until further orders from 1-6-1962 on the following conditions:

1. The pay scale and conditions of service are not affected by the transfer.

2. The transfer will not be considered as interruption of services.

3. In case of employees coming under the category of workman as defined under the Industrial Disputes Act, 1947, the Corporation in the event of retrenchment will pay compensation on the basis that the services had been continued and had not affected by transfer."

5. The State Government Issued directions dated October 28, 1963 to the Corporation under S. 34 of the Act. Relevant part of the directions is as under

"The members of the staff of the Madhya Bharat Roadways and Central Provinces Transport Services, who have opted to serve under the Corporation in pursuance of