Judgment:

Dr. Mukundakam Sharma, J.

1. Leave granted.

2. These appeals filed by the State of Kerala are directed against the judgment and order dated 17.6.2005 passed by the Division Bench of the High Court of Kerala at Ernakulam whereby not only order dated 3.3.2004 of the learned Single Judge of the same High Court was upheld and the writ petition was held to have been rightly allowed by the learned Single Judge.

3. Relevant facts for disposal of the appeals are as under:

Dr. Padiar Memorial Homoeopathic Medical College, Chottanikkara (hereinafter referred to as Padiar Medical College) is a private college established in the year 1920 and governed by its Board of Trustees. On 30.12.1998, a decision, in consultation with the Government of Kerala, was taken by the management of the college to introduce the `direct payment system. At that time there were only 31 teaching staff and 20 non-teaching staff. Consequent thereupon the management appointed 45 non-teaching staff and 21 teaching staff by letter dated 2.1.1999. On 24.1.2000, an agreement was executed between the Government of Kerala and the Governing Body of the College for bringing the said college under the `direct payment sy