JUDGMENT

S.B. Sinha, J.—The Appellant is a Government Company. It is a public sector undertaking. It is a ‘State’ within the meaning of Article 12 of the Constitution of India. A policy decision was taken by the Appellant not to make any further recruitment in Marketing Division in any category of post stating:

“It has been decided that with immediate effect the strength of the Marketing Division be pagged to the number of individuals in position in the Marketing Division as on 31.03.1998. It has also been decided that no further recruitment be made in the Marketing Division in any category of post. However, as and when if any post is required to be filled up in any category due to exigencies of work, the approval of D(F)/MD be obtained and the paper routed through the Corporate Office Personnel Department.”

2. Despite such ban the Respondents had been appointed. Before such appointment the employment exchange was not intimated about the vacancy in terms of the provisions of Employment Exchange (Compulsory Notification of Vacancies) Act, 1959 (for short “the 1959 Act”). Admittedly, no advertisement was also issued. According to the Respondent, he worked at the Shimla Office of the App