( 1 ) THE appellant herein was appointed as Legal Officer by the respondent-IAAI with effect from 8th March, 1984 through appointment letter dated 23rd March, 1984. In the said appointment letter it was stated that the appellant's appointment /continuation in service would be subject to his being medically fit. Clause 7 of of the said appointment letter, which is relevant for the purpose for deciding the present appeal and reference to which was made during the course of submissions, is as under:

"7. Notwithstanding any of the clauses of this letter of appointment, the authority reserves the right to terminate your appointment at its absolute discretion after giving you one month"s notice or on payment of one month"s salary in lieu thereof without assigning any reason. Similarly, you shall be at liberty to resign from the service after giving one month"s notice. "

( 2 ) ANOTHER clause, which is also relevant, is clause 9 which reads as follows: "you will abide by the rules and Regulations of the authority which may be in force from time to time. "

( 3 ) IN clause 17 of the said appointment letter it was stated that if the terms and conditions in the appointme