ORDER :- The petitioner entered service in 1941 as a cashier in the former Imperial Bank of India. The undertaking of the Bank was in 1955, transferred to the State Bank of India as it was constituted by the provisions of the State Bank of India Act, 1955. Section 43 of this Act empowers the State Bank to appoint its officers, advisers and employees and determine the terms and conditions of their appointment and service. The petitioner was taken over into the service of the State Bank and was in 1958 appointed as head cashier under an agreement for service entered into on 12-8-1958 with it. Clause 1 of the agreement provided that the petitioner

"shall be and continue to be the head cashier of Virudhunagar branch of the bank from 27-7-1958 at a monthly salary of Rs. 182 only rising, subject to approved service, by such, increments as may be granted by the bank at its absolute discretion, such service being determinable on either side by two calendar months notice to that effect subject as hereinafter provided".

With effect from 1-1-1959, the State Bank of India brought into force the State Bank of India (Sub-accountants and head cashiers) Service Rules which admittedly govern