JUDGMENT

FAIZAN UDDIN, J.- Leave granted.

2. The appellant is a government company within the meaning of Section 617 of the Companies Act which is controlled and owned by the State Government and a subsidiary company of M.P. Laghu Udhyog Nigam Limited which is carrying on business activities of development of handicrafts and handloom products. At the relevant time one Shri K.P. Thakur was the Managing Director of the appellant-company who by an order dated 6-7-1989 Annexure-D appointed Respondents 1 to 3, namely, Devendra Kumar Jain, Dilip Goel and Promod Mishra as temporary Junior Managers and by two subsequent orders both dated 8-6-1989 (Annexure E/l and 2) appointed Respondents 4 and 5, namely, Mehboob Hussain and Liquat Mohd. Khilzi as temporary Junior Managers in the appellant Company. Soon after their appointment the appellant-Company noticed that the aforesaid appointments of Respondents 1 to 5 were made by the then Manging Director, Shri K.P Thakur in contravention of the Government order dated 1-4-1989 Annexure B without the approval of the State Government and therefore, another Managing Director successor of Shri K.P. Thakur by order dated 31-7-1989 terminated the service