( 1 ) THE State of Punjab and the Union of India, plaintiffs, have filed this first appeal against the judgment and decree of the Subordinate Judge, I Class, dated 27th November, 1963, dismissing their suit against the defendant, which had been instituted for recovery of Rs. 19,173. 57. The suit had been dismissed on the sole ground that in answer to issue No. 6, the court has returned a finding that the plaint has not been proved to have been validly signed on behalf of the Union of India and that the verification of the plaint on the part of the State of Punjab has not been made by a duly authorised person acquainted with the facts of the case.

( 2 ) THE meterial facts of the case are that the defendant-respondent, shri I. M. Lall, who was a member of Indian Civil Service (Punjab Cadre) was removed from service on 4th June, 1940. It is stated in the plaint that he had been reinstated in service with effect from 30th September, 1948, but this statement appears to be incorrect and we shall deal with it separately. According to the plaintiffs, after the reinstatement, the Government also paid the defendant ex-gratia compensation of Rs. one lakh and offered to the def