( 1 ) THE U. P. Co-operative Federation Ltd. , respondent No. 1, employed the petitioner Radha Charan Sharma on February 24, 1965 as a sales representative in its Co-operative Drug Factory at rani Khat. The appointment was for a period of 3 months only but he continued in service. In 1969, he was transferred as on accountant cum goodown keeper in the branch office of the Feder ation at Faizabad. Reports of theft of fertiliser and mis-appropriation of money and materials having been, received, the federation on August 29,-1969 served on the petitioner an order of suspension dated July 21, 1969 suspending the petitioner with immediate effect on payment of a subsistence allowance of 1/4 of his emoluments. This order was passed by the secretary of the federation.

( 2 ) SHRI Sharma, the petitioner, filed the present writ petition in July, 1972 praying that the order of suspension be quashed because it was passed mala fide and in violation of the statutory regulations. He further prayed that he be reinstated in his post.

( 3 ) WHEN the writ petition came up for hearing before a division Beach the respondents Counsel raised a preliminary objection that since the Federation was a private

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