( 1 ) THE short question that arises for consideration in this writ petition is whether the employees of Bhadohi Woollens Ltd. , a Government company (in brief company) which has been winded up. can be absorbed under the Uttar Pradesh Absorption of Retrenched Employees of government or Public Corporations in Government Service Rules, 1991 (in brief Rules 1991 ).

( 2 ) THE company was a 100% State-owned company. Its shares, in entirety, were held by U. P. State Textile Corporation Ltd. , Kanpur and U. P. Export Corporation Ltd. , Kanpur. In S. S. Verma v. G. M. Elgin Mills. 1989 (2) VPLBEC 179, it was held that even a Government company which is wholly owned and controlled by the State is an instrumentality of the State within the meaning of Article 12 of the Constitution. Since the company was owned and controlled by the two Government corporations, whose affairs were fully owned and controlled by the State, it was a Government company as defined in Article 12 of the Constitution, therefore, amenable to writ Jurisdiction of the Court.

( 3 ) THE petitioners, rather all the employees of the company were appointed prior to 1. 10. 1986. They were working with the compan