JUDGMENT:

1. Leave granted in both the matters.

2. These two appeals arise out of a judgment and order dated 20th May, 2005 rendered by the Division Bench of the Orissa High Court at Cuttack in WP No. 2333 of 1991. 3. Writ Petitioner (Respondent in appeal arising out of SLP ) No. 18997 of 2005 and Appellant in the connected appeal) was appointed as a Management Trainee in the Punjab National Bank (Bank). She was duly selected by the Banking Service Recruitment Board, Delhi. An offer of appointment was made to her favour on or about 28th July, 1986 inter alia on the following terms and conditions :-

"2. TRAINING/PROBATION/CONFIRMATION

"You will be on training/probation for a period of 2 years from the date of your joining the Bank and you will be considered for confirmation in the service, subject to your satisfactory report on your training, passing Bank's confirmation test and receipt of satisfactory report from the Police authorities about your character and antecedents. You may also be required to pass a test in a language other than your mother tongue before confirmation.

3. During the period of probation your services can be terminated by giving one month's notice or payment of one month's emoluments in lieu thereof. The Bank may, however, in its discretion extend your probation by a further period not exceeding one year. If you desire to leave the services of the Bank at any time during the period of probation, including the extended period thereof, if any, you shall give a month's notice or in lieu thereof, you shall pay a month's emoluments to the bank."

4. She joined the services of the Bank immediately thereafter.

Pursuant to the condition that she must pass the confirmation test, she appeared in the said examination on 29th May, 1988. She did not pass the said examination. She was, however, again asked to appear in the examination on 1st October, 1989. By a letter dated 5th September, 1989 she expressed her inability to do so, stating :-

" I invite a kind reference to your letter dated 18th August, 1989 wherein I was advised to appear in the confirmation test scheduled to be held on 1 October, 1989 in Central Staff College, Delhi. In this context, I would like to inform you that I am passing through the period of pregnancy and am advised by the doctor not to undertake long journey during the period of pregnancy till delivery as a result of which I will not be able to appear the test.

I, therefore, request you to kindly consider my case sympathetically and permit me to appear the test on the next schedule date, in future. I enclose a medical certificate for your information and favourable consideration."

5. She had two mis-carriages. She was asked again to appear in the examination on 19th August, 1990. She appeared in the said test, but could not succeed. In the meanwhile the probation period expired on 28th July, 1988. It was extended by another year i.e. till 28th July, 1989.

6. Indisputably, she had otherwise completed her period of probation. She also fulfilled the other conditions of service. Her services, however, were terminated by an order dated 9th November, 1990 stating :-

"You were appointed as a Management Trainee on 25.8.1986. One of the terms of your appointment stipulates that :

"3. CONFIRMATION

You will be considered for confirmation in the Bank service after two years on :

a) Satisfactory report of your training.

b) Passing Bank's confirmation Test.

c) You may also be required to pass a test in language other than your mother tongue before confirmation.

In the event of your not satisfactorily completing the training referred to in sub para 3(a) or failure to qualify the Bank's confirmation test within the training/probation period of two years or to pass the test in a language other than your mother tongue, your probation may be extended by a further period not exceeding one year.

If during the period of probation, including the period of extension, if any, the competent authority is of the